Online Banking Starting To Boom
Sydney Morning Herald
Wednesday March 22, 2000
Up to 5,000 people a day are registering for Internet banking, with generation X leading the way, closely followed by many baby boomers, bank research has shown.
Westpac says customers aged between 25 and 34 account for more than a third of its online customers, while those aged between 35 and 44 make up 30 per cent.
The Commonwealth Bank has the largest online business, with 252,000 logging on.
The bank's e-Comm general manager, Mr Stephen Coulter, says registrations are accelerating, with more than $500 million being transferred online via the Commonwealth every month.
ANZ, which is recording 7,500 new online registrations every week, has a total of 190,000 online customers, while NAB has about 160,000.
Westpac announced it had signed up 200,000 registrations this week, rising from 100,000 in just seven months.
Banks said Thursday was the most popular day for online banking, because most employees are paid on Wednesday and log on to check deposits and make payments the day after.
The peak time for Net banking is between 8.30am and 11am during weekdays, with another rush between 9.30pm and 10.30pm.
These figures suggest many customers make transactions when they arrive at work.
A spokesman for ANZ said 80 per cent of Net banking customers were active and made an average of seven transactions a month.
While convenience is a key reason for people switching to Net banking, banks report that customers also feel more in control when they access accounts online.
``People feel far more empowered about the management and control of their finances and more part of the relationship with the bank when they can make changes on their terms," said Westpac's head of internet services, Mr Jonathan Poole.
ANZ spokesman Mr Paul Edwards said the extra flexibility offered by the Net, such as printing statements at any time and being able to schedule payments, was another big attraction.
Online banking specialists predicted that people younger than 25 years will lead the way in the latest Net banking medium mobile phones.
The Commonwealth already has 3,000 customers signed up for its mobile bank program that allows customers to check balances and transfer funds via mobile phones.
Mr Poole said females were rapidly catching up with males as Internet banking users. A year ago, 17 per cent of Net bankers were women. The number has now risen to 35 per cent.
He expects 30 per cent of all Westpac customers, or more than a million people, will be banking online by 2002.
© 2000 Sydney Morning Herald