Online Banking:Remote Channels, Remote Relationships?

Table of Contents

Impetus

• US Online Banking Households, 20042010 (millions and % of total online households)

Overview

Issues & Questions

The eMarketer View

• Key eMarketer Numbers

Implications for Your Business

Demographics and Online Banking

• US Internet Users, by Age, 2004 & 2005 (% of respondents in each group)
• US Adult Internet Users for Whom the Internet Is the Primary Source of Information about Products They Plan on Purchasing, by Household Income, March 2006 (% of respondents in each group)

The Internet as Financial Informer

• Influence of the Internet on Financial/Investment Decisions of US Adults*, FebruaryMarch 2005 (% of respondents)

Gen Y Graduates to Financial Services

• Usage of FinanceRelated Web Sites by US University Internet Users, by Category, 2005 & 2006 (average minutes per visitor and % increase vs. prior year)
• Usage of Select Finance Web Sites by US University Internet Users, 2005 & 2006 (average minutes per visitor and % increase vs. prior year)
• Information that Recent US College Graduates Consider "Somewhat" or "Very Important" to Include on a Web Site Targeted to Them, 2005 (% of respondents)

Gen X, Boomers and the "New Middle"

• Select Online Activities of US Internet Users, by Age, 2004 & 2005 (% of respondents in each group)
• Degree to which Select Sources of Financial Information Affect Affluent Baby Boomers' Plans for Financial Security, March 2005 (% of respondents)
• US Internet Users Who Use Online Financial Services, by Income, February 2005 (% of total users of each service)

Some Banks Bet on Seniors

The "Unbanked" Opportunity:

• Demographic Profile of US Unbanked* Consumers vs. All US Consumers, 2006 (% of respondents)
• Online Activities during the Past Year among US Online Unbanked* Consumers vs. All US Online Consumers, March 2006 (% of respondents)

Consumer Attitudes and Behaviors

The Financial Future Is Online

• Distribution of Banking Services* Worldwide, by Channel, 2000, 2005 & 2010 (% of services delivered)
• Active Online Banking Customers* for the Top 10 Banks in the US, Q4 2002Q4 2005 (thousands and % increase vs. prior quarter)
• Number of Times per Month that US Adults* Conduct Select Online Personal Banking Activities, 2004 & 2005

Europeans Prefer to Bank Online

• Percent of Banking Done Online by Consumers in Select Countries Worldwide, 2005 (% of respondents)
• Level of Satisfaction with Banking Channels according to Online Financial Services Users in Europe* and Canada, 2004 (% of respondents)
• Reasons that Adults in the UK Have or Intend to Purchase AtHome Internet Access, JuneAugust 2005 (% of respondents in each group)
• Select Types of Web Sites that Are Visited by Female Internet Users in Europe, 20032005 (% of respondents)

In the US, Time Is of the Essence, Sort Of

• Banking Channel Preferences for Select Financial Activities according to US Adults, FebruaryMarch 2006 (% of respondents)

Bill Paying through Bank Sites Shows Growth

• US Consumers Who Bank Online and/or Pay Bills Online, 2003 & 2005 (% of respondents)
• Reasons that US Consumers Pay Bills Online, 2005 (% of respondents)
• Reasons that US Consumers Do Not Pay Bills Online, March 2005 (% of respondents)

Little Loyalty Online

• Likelihood that US Consumers Would Switch Banks for Free ATM Service Nationwide, August 2005 (% of respondents)

'Online Only' Accounts Have a Disruptive Impact

• US Internet Users Accessing Online HighYield Savings Accounts, January & October 2005 (thousands of unique users and % growth)
• US Internet Users Accessing Online HighYield Savings Accounts at More than One Institution, January & September 2005 (% of Internet users)

Web Site Functionality Is Critical

• Common Problems US Consumers Experience on Banking Web Sites, October 2005 (% of respondents)
• US Consumer Reactions to Problems Conducting Online Transactions*, October 2005 (% of respondents)

The Insiders' View of Banking Web Sites

• Top Three US Banking Web Sites, Ranked by Overall Customer Satisfaction and Experience, 2006
• Top North American Financial Services Companies, Ranked by Online Customer Experience, Q2 2006 (based on an index*)

Security, Privacy and Trust

• Factors that Will Improve the Customer Online Banking Experience according to US Adults, 2005 (as a % of respondents)

Banks Have the Most Trusted Financial Sites

• Trust Level of Financial Services Web Sites according to US Internet Users, 2005 (% of respondents)

But Trust Is Eroding as Security Breaches Rise

• Method of Payment Reported by US Consumers for Internet Fraud Complaints, 2003 & 2005 (% of complaints)
• US Consumers Who "Completely/Strongly Agree" that InternetBased Financial Transactions Are Safe and Secure, 20002003 & 2005 (% of respondents)

Twofactor Authentication Arrives

• Steps that US Consumers Feel Financial Institutions Should Take to Strengthen Online Banking Authentication, November 2005 (% of respondents)