In 1998 just six percent of banks in the United States offered online banking.
By this year, 61 percent of banks were offering online banking and
estimates are that by the year 2003, this will have swelled to 86 percent.
From 8,1 million in 1998, the number of people using online banking in the
US is expected to leap to 39 million in two years` time.
These figures were quoted by Dominic Podmore of Dimension Data at this
week`s meeting of the Nedcor Investment Bank - Saturday Argus Investor Club
in Cape Town.
online banking hasn`t yet taken off in South Africa at the same speed, he
says, but it`s coming. At the moment only about five percent of South
Africa`s 1,8 million internet users use online banking. But, says Podmore,
2,5 million South Africans will do their banking online by the year 2005.
And if trends in the United States are any indication, you can expect big
changes in the way your bank handles your online account.
The traditional approach, with banks offering account balances, transfer
facilities and statements, is already evolving, he says, and more and more
banks are now looking at customer behaviour and preferences so as to
generate custom-built solutions.
Once the transformation phase is complete, Podmore says, you will be able
to do much more than see and pay your bills on your computer screen.
You will also be able to search for the best home loan, buy insurance, make
investments, trade shares - and get a personalised message from your bank
telling you it`s time to renew your car insurance or update your portfolio.
This is the concept of the ``financial portal`` which is developing in the
United States.
Managing the relationship with you, as the client, will be more important
to your bank than selling you its products.
``One-size-fits-all`` products will evolve into differentiated packages and
mass marketing into one-to-one marketing.
Wells Fargo in the United States, with 800 000 online users, routinely
offers customers account balances, with details of funds available for
transfer immediately, listings of all transactions for up to 45 days, the
chance to make transfers and payments or to see if a cheque has been
cleared at the click of a mouse.
``Banking customers will want a one-stop shop for their financial services,``
says Podmore.
When you buy a car, he says, you`ll want to do everything - except test
drive - from your computer screen.
You should be able to choose the car and order it, shop around for a loan,
arrange the loan, and buy car insurance - all without leaving your desk.