Not surprisingly, those with more disposable income are more likely to take advantage of
the perks of online banking, such as 24-hour access to accounts and higher interest rates. As of
December 2005, 55% of internet users living in households with $75,000 or more in annual
income say they bank online, compared with 29% of internet users living in households with less
than $30,000 in annual income.
The Pew survey question did not distinguish between internet users who can access their
regular bricks-and-mortar bank accounts online for such things as checking balances, paying
bills, etc. and those who maintain accounts in internet-only banks. But there is evidence that
internet users may be moving quite a bit of cash to their internet-only bank accounts. A 2005
report by the Federal Deposit Insurance Corporation reports that in December 2003, when online
banking was still on a steep adoption curve among internet users, the average total assets of an
internet-only bank were $3.5 billion, compared with only $1 billion for all banks.
One reason for this gap is that a few huge internet-only banks are skewing the average.
For example, ING Direct, which was established in 2000, already has 4 million customers and
$59 billion in assets. Another reason for the difference is that many banks and thrifts draw from
a local customer base, not a national one. For example, Adams County Building and Loan
Company in West Union, Ohio, was established in 1907 and currently has $24 million in assets.11
The two banks simply serve different customers and different needs.
Moreover, while the percentage of internet users banking online is holding steady,
internet users are increasing the frequency of their visits to banking and other financial websites.
According to comScore Media Metrix, the number of unique visitors to Business/Finance websites
grew by 9% between April 2005 and April 2006. The top five sites in that category for April 2006
were Bank of America, PayPal, JPMorgan Chase Property, AOL Money & Finance, and Capital
One. What was the sixth most popular finance site in April? IRS.gov, of course.
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