Published: September 26, 2005
(After October 04, 2005, this article will only be available to eStat Database subscribers.)
An annual survey of online banking customers finds good news and bad for the industry. Security concerns continue to be a major issue.
The good news for banks is that, among consumers who bank online, usage is up. According to Ipsos Insight’s annual survey of online banking customers, respondents reported more frequent balance inquiries and other online banking activities.
But security worries, fears of identity loss and phishing are having an adverse effect on the growth of online banking. After years of dramatic growth in online banking penetration, the percentage of Americans who conduct personal banking activities online remained virtually unchanged at 39% for the 12-month period ending August 2005.
Banks are failing to convince new customers that online banking is safe, and many current users are concerned. The survey found:
83% of survey respondents who conduct their personal banking online reported concerns over protecting their personal information from theft
73% of people said personal information theft is a deterrent for them to use online banking
72% of respondents said the issue of banks selling their personal information to third parties was extremely or very important