Online banking

INDUSTRY SOLUTIONS

The State of Online Banking
May 2010

FOR FURTHER INFORMATION, PLEASE CONTACT: Marc Trudeau comScore, Inc. 703-376-6667 mtrudeau@comscore.com

The State of Online Banking

April 2010

Introducing the 2010 State of Online Banking Report
The comScore 2010 State of Online Banking report provides an in-depth look at the online banking industry, with emphasis oncustomer satisfaction and online service usage. This analysis leverages behavioral data obtained via the comScore panel of 1 million U.S. Internet users as well as information gathered through a survey of more than 2,500 U.S. Internet users to provide an in-depth look at online banking today.

In order to demonstrate shifts in the online banking industry, the findings from this study were compared toresults from similar, previously-published comScore studies that were conducted during the following time periods.

Dates Survey Conducted

Number of Respondents

April 3 – April 7, 2007 March 5 – March 10, 2008 Feb 26 – March 2, 2009 March 23 – April 9, 2010

1,400 2,520 4,846 2,576

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The State of Online Banking

April 2010

Online Banking Industry Snapshot
Online ChannelContinues to Grow in Importance to Banking Customers Online banking continues to grow in importance for the average American. Since the inaugural comScore online banking report in 2006, the number of DDA customers visiting the top 10 online banking sites has increased from approximately 40 million people to more than 58 million people. In any given quarter, nearly 60 percent of the total U.S.Internet population visits at least one of the top 20 financial institution (FIs) sites.

However, there are clouds on the horizon as organic growth at the top 10 banks is stagnating. Quarterly growth rates in the 1 to 2 percent range, compared to 5 to 10 percent in the middle part of the decade, indicate that penetration of online banking is reaching maturity. Although online banking customervolume is not growing quickly, its importance in the day-to-day lives of Americans continues to increase; hence banks continue to develop new products and services to enhance the channel.

Online DDA* Customers** (MM)
55.9 48.2 48.6 45.4 47.3 46.9 47.3 43.0 43.8 41.3 38.8 39.9 40.2 50.9 51.4 59.1 57.9 58.4

31.4 26.5

34.2

36.5

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

3Q07

1Q083Q08

1Q09

3Q09

Source: comScore, Banking Benchmarker *DDA customers include checking, savings, money market and high-yield savings account, but not CDs **Includes customers of Bank of America, Chase, Citibank, ING Direct, National City, Capital One, U.S. Bank, Wachovia, WaMu and Wells Fargo beginning 3Q08 and prior to 3Q08 the competitive set is the same except SunTrust replacesCapital One Beginning Q109 the competitive set has changed to include three additional banks to account for the mergers- HSBC, SunTrust and PNC

After a tumultuous year of mergers and acquisitions that followed the extensive federal bailout of most major FIs, we are beginning to see a return to stability as firms and customers adapt to the new economic climate. Since last year, consumers have becomeslightly more optimistic about the state of the economy, with 41 percent of respondents perceiving the economic condition as ‘poor’, a decrease of 25 percentage points from the previous year. Importantly, the percentage reporting that the economic climate is ‘good’ or ‘excellent’ has increased from 11 percent to 18 percent.

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The State of Online Banking

April 2010

Perception ofthe Economic Climate, % of Respondents
66% 41% 39% 22% 7% 14% 4% 4% Excellent 1% 2% Not Sure
Source: comScore, 2010 Banking Survey

Apr-09 Apr-10

Poor

Fair

Good

Despite the perception that the economy is in recovery, consumers are still cautious when it comes to their personal financial behavior. When asked if they changed the way they pay for items due to their economic concerns,...