Nearly 23 Million Americans Will Be Banking Online in 2004

FRAMINGHAM, MA – JULY 20, 2000 – Interest in online banking has been steadily increasing in the United States, which will result in a dramatic rise in user participation over the next two years. According to IDC, the number of U.S. households banking online will skyrocket to 22.8 million in 2004.


As this large banking consumer base moves online, it will bring with it significant implications for banks, ranging from technology support and customer service, to online banking functionality. Banks of all sizes that have resisted creating online services will find themselves competitively disadvantaged over the next 24 months. Banks will have the opportunity to position themselves as either "aggressive" or "defensive" with their online banking strategies, and necessary investment will reflect that positioning. As more "traditional" banks come online, the "virtual" banks will need to adjust their business models to remain relevant.

"Banks of all sizes are acknowledging that consumer demand for online banking is reaching a critical point. The majority of new users will be accessing banks through the Internet, and this has significant implications for those banks that already offer online services, in terms of supporting direct-dial and personal financial software users and executing acceptable customer service," said Shaw Lively, research manager for IDC's Online Financial Services program. "As the number of U.S. online banking households grows, banks will need to stop thinking about the Internet as an alternative channel and instead think of it as a mainstream channel every bit as important as branches, call centers, and ATMs."

IDC’s new report U.S. Online Banking Market Forecast and Analysis, 2000-2004 (IDC #B22451) analyzes the online banking industry and customers' interest in online banking services. Included in this report are forecasts of U.S. households' online banking penetration through 2004 and forecasts of banking delivered via direct dial and the Internet. Also included is analysis of the use of consumer banking with browsers, personal financial software, and bank-issued software, and its implication for banks. The report also discusses factors currently driving and inhibiting online banking. The report concludes with IDC's recommendations to banks offering online services.

To purchase the report, please contact Demetra Georgakopoulos at 1-800-343-4952, extension 4496 or at For more information on IDC's eBusiness programs, please visit

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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