Online Banking Matures, Competition Heats Up
comScore has released the results of its annual online banking study - finding that "the U.S. online banking population grew 9.5 percent in 2006 versus the previous year, compared to double-digit increases in 2005 (27 percent) and 2004 (47 percent). While aggregate growth has dropped into the single-digits, several individual banks experienced substantial gains in 2006, with both Citibank and Washington Mutual increasing their number of online banking customers by more than 20 percent" - due in part to Citibank's aggressive 'e-savings' campaign and Washington Mutual's continued free checking and 5-percent statement savings accounts.
"Competition for new customers is heating up as the online banking industry matures," said Serge Matta, senior vice president of comScore Financial Solutions. "Incentive programs and aggressive savings account interest rates will continue to lure new customers, but banks are also focusing on increasing usage of online banking features among current customers. One key element to increasing engagement among current online banking users is addressing customers' senses of security on the sites."A recent survey of online banking customers conducted by comScore showed that customers perceive an increase in security of both online banking sites and the Internet as a whole. While 58 percent of online banking customers believe the Internet is more secure than one year ago, 68 percent believe online banking is more secure than one year ago. The top reasons for the heightened sense of security on online banking Web sites fall outside of the immediate control of financial institutions, with increased Internet security and upgraded computer security software the most commonly cited reasons.
Among the top five banks, Wachovia customers were the most satisfied both in terms of their overall banking relationship and with the bank's Web site, maintaining the lead for the third year in a row. 75 percent of Wachovia customers responded that they were highly satisfied with their banking relationship, up from 73 percent in 2005. Of these highly satisfied customers, 96 percent were also highly satisfied with the Wachovia website. Washington Mutual ranked second on both measures.
While mobile Internet use continues to rise, less than a quarter of those who currently bank online are interested in mobile bank account access. The top reason cited for not being interested in mobile banking was the need for a mobile Internet subscription. Of those interested in mobile banking, the most desired service was balance inquiries.
Add your comment... (note that all comments are reviewed before they're published)