eMarketer Reports One in Every Five U.S. Households Is Banking Online; Online Banking Increased by 37.6% in 2001

Business Wire, Oct 2, 2002

Business & High Tech Editors

NEW YORK--(BUSINESS WIRE)--Oct. 2, 2002

According to eMarketer's just-released report, Interactive Banking: Integrating Online into Traditional Channels, while some areas of e-commerce are stagnant or slumping, online banking is experiencing strong growth.

In the U.S. alone, the online banking population grew 37.6% in 2001. This year it is projected to continue growing at a robust 23.3% rate.

"The rate of growth will diminish over the next few years, but it will remain steady and positive," says David Hallerman, Senior Analyst at eMarketer. "By the end of 2005, 31.5 million American households will be banking on the internet."

One in every five households is currently banking online, and eMarketer expects that figure to increase to 26.1% by 2004. To put that in perspective, 70.3% of all U.S. households will be online by 2004, which means 37.1%, over one third, of all online households will be banking online.

"A few years ago banks hoped that the internet would reduce traffic in higher-cost channels such as the branch and the call center, but that isn't happening," says Mr. Hallerman. "Customers want the same banking services no matter the channel: internet, branch, ATM or call center. Banks are finding, however, that combining the internet and in-person channels is often the best way to deal with complex financial tasks such as mortgages and financial planning."

Drawing on the latest data gathered from financial research firms and publications, government agencies and trade associations, the Interactive Banking Report provides a comprehensive overview of the interactive banking market and the complex multi-channel options that are now available to banking customers.

Additional information included in the report:

- Leading institutions

- Existing and emerging technologies

- Electronic payments

- IT spending and trends

- Existing and developing services

- Customer demographics, desires, and attitudes

- Key trends in the market, such as convergence (banks offering other financial-service products like insurance)

A Free Executive Summary of the new eMarketer report, Interactive Banking: Integrating Online into Traditional Channels, is available to the press.

About eMarketer:

New York-based eMarketer, "The World's Leading Provider of eBusiness Statistics," publishes internet and e-business information for marketing, management, IT and financial professionals. Founded in 1996, eMarketer aggregates, filters, organizes and analyzes data from over 1200 research firms, consultancies and government agencies around the globe. The company offers the most comprehensive database of e-business statistics as well as a variety of reports featuring original analysis prepared by eMarketer's team.