The expansion of online banking has been tremendous since its introduction, but its growth is starting to slow, according to a new study.
To counter the trend, banks are reaching out to customers who are wary of security breaches.
In 2007, 61 million households used online banking services, a little more than half of the total U.S. household population, according to Javelin Strategy and Research.
The study forecasts this number will grow to around 82 million by the year 2012.
But the researchers also found that the number of customers using online banking and bill payment has plateaued for the last three years. Thirty-eight million consumers are less likely to recommend online banking now compared to two years ago.
Banks could do more to promote online banking, and it would be an “effort well spent,” ForeSee Results President and Chief Executive Officer Larry Freed said.
Bank employees recognize that online customers are their most valuable clients. They stay with the company longest and have a “deeper relationship” with the bank, Bank of America spokeswoman Betty Riess said.
Bank of America has 175 banking centers and more than 450 ATMs in the metro area and started offering free online bill pay in May 2002. About 60 percent of customers with savings and checking accounts, or 22 million people, use the bank’s Web site, and 11.4 million have active bill pay accounts.
Wachovia has 4.5 million online customers, and a total of 13 million households and businesses as clients, according to Communications Director Matt Wadley.
Banks have enhanced their online security in order to allay any fears of identity theft and fraud. Bank of America’s SiteKey feature is designed to recognize each customer’s computer and show that the Web site itself is not fraudulent. Wachovia’s Security Plus system monitors deviations in usage patterns in its customers’ accounts, said John Watkins, director of online services.
