While the growth has been rapid, it is still catching many traditional bankers flat-footed, when this statistic is announced. There is something insidious about watching these stats; I recall when we sat at single digit internet use, and banking online wasn't even a statistic. Then it moved into double digits, and late in the 90's decent stats began to appear about the percentage that were banking online. But even then, the typical comments, were "passing fad", or they are "early adopters". Both comments were intended to clarify that the mainstream would never forsake the branch.

Pew Internet: Online Banking 2006

Online banking is holding steady as a mainstream internet activity, growing along with internet use generally, though not accelerating as have some other forms of online activities. Fully 43% of internet users, or about 63 million American adults, bank online.

Well, here we are, bordering on a majority of internet users banking online, and that accounts for a clear majority of those customers interactions with their bank. Oh and its worthwhile remembering that most people are internet users, so that part of the stat is no longer an out. In the US, 73% are internet users, with half of those on broadband. In Canada where the statistics are roughy similar (or higher) 80% are online, and broadband peneration is similar.

I only quote these numbers and historic context, to make the point that its time to stop making excuses rationalising that internet is for a "segment". If your bank is past that then more power to them. The comment that everyone still uses the branch is a simple fact borne of insufficient functionality online.  Online customers expect to do as much as possible online. And a key point is the evolution of that expectation … that expectation will grow to a broader and broader suite of functionality expected online.

Relevance to Bankwatch:
Internet is pervasive, and given the demographic shifts to Gen X/Y as well as boomers adoption, internet and online banking should be conisdered as the lead component in most new product/ service launches.

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