Online Banking Hits Half of Internet Users

by Jason Unger

New research out today: 49% of the “online population” does most if not all of its banking on the Internet.

That’s according to HSBC Direct. (read the press release here)

“People are increasingly turning to Internet banking because of the increased convenience, independence and typically better value that it offers,” said Kevin Martin, EVP of Personal Financial Services, HSBC Bank USA, N.A.

The findings from HSBC Direct align with projections about the future for online banking from Forrester Research that indicates 92 million or 76 percent of American households are expected to be banking online by 2011. (1)

Web activity on further reveals that consumers are taking full advantage of being able to bank online at times when banks are traditionally closed. Thirty-nine percent of customers using last year conducted their online banking between 6:00 p.m. and 7:00 a.m. ET.

Data also suggests that customers like banking online on days when a brick and mortar bank would traditionally be closed. In 2008 the site experienced almost one quarter of its web traffic over the weekend, with the distribution equally split between Saturdays and Sundays. (2)

Not surprisingly, younger people — 21 to 34 — do more banking online than other generations (62 percent). But the number of Americans ages 45-69 banking online is high in itself — 40 percent. With so many internet service providers, these numbers shouldn’t come as a shock to anyone.

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