Who Will Win the Banking Channel Stakes in the U.S.?

by Mercator Advisory Group 0

As with most new channels, the growing adoption of mobile banking has been hyped as the new platform that bankers must deploy now or be forever be lost in the dust of progressive mobile promoting banks. Blogger Rajashekara Maiya from Bangalore India, who is a product manager for Infosys’ Finacle core banking system, points out that online banking has established ascendancy as consumers favored banking channel.

Amidst all the hype surrounding mobile banking, it is interesting to see how well online banking has fared in the United States. For instance, Bank of America says that both online and mobile services are becoming increasingly important with the rising trend of using the Internet or the smartphone to access checking accounts.

The American Bankers Association recently conducted a survey of 10,000 consumers to find that online banking had found favor with 36% of respondents – versus only 25% last year – making it the most popular banking channel ahead of the branch and ATM. This lends credence to the belief that online banking is the channel of the future, with young, tech-loving customers entering the customer base. But it’s not only Gen Y who have reposed their faith; online banking was the second most popular channel (after the branch) even among those above the age of 55.

For more of Rajashekara’s opinions read his blog: http://www.bankinnovation.net/profiles/blogs/who-will-win-the-banking

For additional information on the online banking market, solutions, and strategies read the following Mercator Reports:
“Online Banking Today and Strategies for the Future: Increasing Adoption, Access, and Usage” http://www.mercatoradvisorygroup.com/index.php?doc=Banking&action=view_item&id=508&catid=17

“Online Banking Solution Review: It’s All in The Eyes of the Beholder” http://www.mercatoradvisorygroup.com/index.php?doc=Banking&action=view_item&id=559&catid=17

“US Consumer Online Banking: Market Landscape & Leading Vendors” http://www.mercatoradvisorygroup.com/index.php?doc=Banking&action=view_item&id=529&catid=17

“Evolving US Payment Systems and Bank Delivery Channels: Death of the Teller…Again?” http://www.mercatoradvisorygroup.com/index.php?doc=Banking&action=view_item&id=454&catid=17