Nearly 60% of Consumers do not know if their Primary
Financial Institution Offers On-line Banking.

May 12, 2000, Oakbrook Terrace, IL.  
The latest study by the Raddon Financial Group (RFG) shows that 58% of consumers do not know if their primary financial institution offers an on-line banking service. RFG’s semi-annual national consumer research study is syndicated by over 200 financial institutions and reports on consumer product pricing and delivery channel behavior.

On-line banking awareness is improving.  A previous study conducted by RFG in the fall of 1999 showed that 63% of consumers did not know if their primary financial institution offers on-line banking.  This number fell to 58% this spring.

29% of consumers surveyed knew their primary institution offers on-line banking.  The other 13% were certain their primary institution does not offer an on-line banking service.  VP of Research, Robert O’Meara points out, “the financial services industry is having success reaching the early-adapters, consumer segments that have a propensity for electronic delivery channels.  It may be more difficult for financial institutions to generate higher awareness levels in other market segments.”

In fact, RFG’s study points to a higher awareness among younger and higher income segments.  Expectedly, these same segments have the highest propensity to use on-line banking services.  Awareness among other segments falls lower, in addition to their willingness to use this type of service. The good news for financial institutions is that households likely to use an on-line service represent key segments for selling loans, deposits and investments.

RFG’s study also investigates the features valued most by consumers who bank on-line.  From trading stocks to viewing balances, RFG ranks specific features by their value to on-line consumer households.  Additionally, RFG’s study identifies several factors consumers indicate for not logging-on to manage their finances. 

For over twenty years RFG has provided custom and syndicated national consumer research to the financial services industry.   This recent study was conducted for over 200 financial institutions.  To receive this complete research study or for a regular subscription to RFG’s syndicated research, call 800.827.3500 ext. 383.