NEEDHAM, Mass. - Adoption of online banking by U.S. consumers is going strong, outpacing growth rates for every other method of retail-banking delivery, according to new research from TowerGroup. In a report, entitled "Delivery Channel Volumes in the United States, 2006-2010: From 'In Line' to Online," Jerry Silva, TowerGroup's research director for the retail banking practice, outlines trends and predictions for the ever-increasingly popular banking channel.
TowerGroup says online banking is becoming the most powerful retail channel financial institutions have ever deployed, outpacing everything from the ATM to call center, and increasing in use at an annual rate of 27 percent.
TowerGroup's research also reports that consumers are interacting with their financial institutions more than in previous years. And he research consultancy predicts growth in overall U.S. delivery-channel transactions will be strong between 2006 and 2010, increasing at an average rate of 10 percent across the branch, ATM, online and call-center channels.
With ATMs and bank branches showing signs of flattening transaction volume, TowerGroup says the Internet represents the future of bank delivery.
"Customer preferences are evolving from waiting in line for the teller, to going online for more and more of their needs," Silva said. "The call center is also becoming extremely popular in light of the penetration of mobile-phone use in the U.S. However, unless banks improve the technological capabilities and complexity of their call centers, much of this channel's growth will not convert into business opportunity for institutions."
TowerGroup says strength will come from increased collaboration between channels to create more synergistic environments for both customers and banks.
