Other Product Usage

Online banking users are far more likely to have used other online financial services compared to the online population as a whole. For example, 25% of online bankers have traded stocks online, almost four times the 7% rate of all online users.

Table 1
Other Activities of Online Banking Users
percent of total

Source: Cyber Dialogue, 3/00

*For example, online banking users are twice as likely to manage investments online compared to the online population as a whole.

Small Business Usage

Small business usage of online banking outpaces consumer usage, but not by as much as one would expect. In Oct. 1999, PSI found that 14% of small businesses used online banking. This is nearly double the level of n

on-business-owning consumer usage which we estimate was approximately 7% to 8% in Oct. 1999.

Table 2
Small Business Usage
percent of total

Source: PSI Global, Oct. ’99 telephone and mail interviews with 1,000 business owners of companies with sales between $50k and $500k

ina=information not available

There continues to be a significant gap between interest and actual usage of online banking. Only 12% of PC owners report using their PCs for banking transactions. In contrast, 41% of PC owners have used their PCs for finances, and 52% of PC owners are either very or somewhat interested in banking online (see Table 16). This ratio of four interested non-users for every user has remained relatively constant for the past several years. The ratio is also constant across most demographic slices except in the highest and lowest income categories. Within the next five years, we expect the majority of the 20% of PC owners who are very interested will join the 12% who are already users, equaling a 32% penetration of PC.

Table 3
PC, Online, and Online Banking Use by Age and Income
estimated online user base

Source: American Banker/Gallup 1999 Consumer Survey.  This survey covers only households with at least one type of financial account and excludes the unbanked that are believed to comprise 8% to 12% of the roughly 102 million U.S. households.
¹To buy or sell, or to request information to be mailed; percentages are of people who said they have ever used the Internet (n=69%).
²To keep track of checking accounts, credit cards, or other financial matters.