According to Jupiter Research, the number of online banking households will grow at a compound annual growth rate of 14 percent to 56 million over the next five years.
The reason for the jump is simple — more households will connect to the Internet. Once the purview of well-heeled consumers, online banking will see its strongest growth from lower and middle class households (defined in this study as those with income of $75,000 or less), which will use bank Web sites to manage credit cards and auto loans, Jupiter Research says.
Jupiter Research analysts say online banking has more to do with consumers’ choice of channel (the Internet, rather than the teller or telephone) than differences between rival banks offerings.
The report states “only possible threat” to increasing online bank usage is a security breach and concludes, “Security concerns are already a primary inhibitor of initial consumer adoption; if realized, they will be a serious drier of online attrition.”
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