The biggest story in 2002 was the continued phenomenal growth in usage despite the rocky economic climate. During the year, an estimated 25 million net new households began banking online, increasing the worldwide total to 100 million. In the U.S., 2002 growth was slightly less than 2001, with 28 million households at yearend.

The year was marked more by execution than innovation. Many of the best online providers made significant Web-usability improvements, but didn’t expand the basic feature-set. A striking exception is Charter One Bank, which launched a number of new features including, fyiAlerts, the OBR Innovation of the Year. See Top 10 Innovations of 2002 for other major developments.

For 2003, we predict a sharp increase in the internal status of the online channel. The majority of retail banking execs will see the online channel as a key sales driver throughout the decade. Brick-and-mortar operations will still dominate sales charts, but for grabbing incremental market share, online sales and promotions will be increasingly important. For a look at the upcoming year, see 2003 Predictions.