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Online Banking Matures

APRIL 20, 2007

FBLI
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The number of online banking customers is growing, 9.5% in 2006, according to the "Online Banking Report" from comScore.

Some online banks still reported more than 10% customer growth for the year, due to incentives such as free checking, high interest savings and e-savings promotions. But compared to double-digit increases for the industry over the previous two years, growth is slowing, and even promotions will not be enough to sustain it over time.

"Competition for new customers is heating up as the online banking industry matures," said Serge Matta 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."

Focusing on security is one way to increase online banking usage.

comScore found that 58% of online banking customers believe the Internet overall is more secure than a year ago, and 68% believe online banking is more secure.

One feature that will not reenergize online banking growth is mobile access.

Less than a quarter of online banking customers are interested in mobile account access. Most of them either do not have or do not want a mobile Internet subscription. Those who are interested in mobile banking mainly want to check their balances.  

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