Internet banking gaining momentum
November 13, 2009 – 12:40 pm by Shalini AmarnaniA new survey by the American Bankers Association shows that for the first time, more bank customers (25 percent) prefer to do their banking online compared to any other method.
The survey highlights that more consumers prefer the speed and convenience of conducting their banking transactions on the Internet than visiting their local branch. It also speaks volumes about the growing confidence in the accuracy and security of online banking.
Survey results showed that the popularity of online banking was not exclusive to the youngest consumers: it was the preferred banking method for all bank customers under the age of 55. Consumers over 55 still prefer to visit their local branch (26 percent), followed by ATMs (17 percent).
Among all consumers, the preference for online banking was followed by visiting branches (21 percent), and using ATMs (17 percent). The use of mobile banking (cell phones, PDAs, etc.) was preferred by one percent of consumers, primarily among 18 to 34 year olds. The popularity of ATMs was down in all age groups.
From the graph we can see that Mobile banking has remained stagnant over the last one year. See our previous post about bankers not giving mobile banking a push. Branch and ATM banking is down sharply. Many banks charge a premium on branch banking and encourage internet banking as it takes the load off the staff.
See preferred banking method ages 18-34.
See preferred banking method ages 35-54.
See preferred banking method ages 55+.
If you click on the links above you can see graphs of each age group over the period of three year. Very interestingly in the two older age group the people who tried mobile banking in 2008 (it was introduced then) have since shunned it! Seems like there is an inherent flaw in mobile banking offering that customers are actually turning away from it.
RSS
One Response to “Internet banking gaining momentum”
One of the major reason why Mobile Banking has not really taken off is that there is a better penetration of the internet today. Internet Banking scores higher on the consumer perception in regards to security and robustness as compared to the Mobile Banking. The main advantage of Mobile Banking is the Convinience and accessebility it offers (the any-time any-where kinds).
However now a days Internet is not that far from us at all. Now with Wi-Fi Hot Spots and Wireless Modems everywhere its easier to hook up to the Net any time she wants.
Take for example me, I have Mobile Banking Activated on my phone. Also i am continuously online when in office and also at home. i have not been in a bank branch for almost a year now. Guess where do i do all my banking???
On the internet (laptop) and not on the Mobile.
I do have used Mobile Banking only in a case of a Emergency where i did not have the time or the means to logon to the Net.
I Guess mobile banking is more of an option for an emergency situation rather than a comfortable mode of banking for most of us.
By VJ1681 on Dec 8, 2009