After years of dramatic growth in online banking penetration, the percentage of Americans who conduct personal banking activities online remained unchanged during the 12-month period ending August 2005. According to results from a new survey of 1,000 American adults conducted by
Ipsos Insight, the reasons behind the stall are concerns about hackers stealing and using personal information and fears that some companies may be selling client records to third parties. Thirty-nine percent of Americans conduct banking online.
The proliferation of "phishing" and highly publicized hacker tactics have thwarted industry efforts to convince customers that online banking is safe. Results of the survey include:
- 83 percent of survey respondents who conduct their personal banking online reported concerns over protecting their personal information from theft.
- 73 percent of people said personal information theft is a deterrent for them to use online banking
- survey respondents were equally concerned about banks selling their personal information to a third party, with 72 percent of respondents citing the issue as "extremely" or "very important."
"The industry needs to convey that they are, in fact, addressing the fundamental issues of personal information protection and theft associated with online banking because the public's misperception is what's deterring growth," said Doug Cottings, senior vice president of Ipsos Insight's Financial Services Division. "There are specific ways companies can make online banking a better experience, beginning with assuring customers that their information won't be sold to third parties."
