Survey Shows Large Market Potential for Internet Banks 
and High Awareness for Wingspan Bank

August 30, 1999, Oakbrook Terrace, IL.  
A recently conducted study shows that one-fourth of all US households have heard of one or more Internet Banks though advertising, reading or browsing the Internet. This figure jumps to 32% for households that have access to the Internet either at home or through work. The survey included 1,274 nationally representative households and was fielded in the first three weeks of August this year.

Survey respondents were asked to cite which of seven Internet banks they had heard of and Wingspan and CompuBank were tied on recall at 14% of Internet users. Telebank was third on the list with 9% awareness.

"Within six months Wingpsan’s strategy of using large scale mass media to launch their bank has placed their awareness level as high as or higher than banks that have been in existence since the mid 1990’s" said Gary Raddon, President of RFG, a Chicago based database research firm that specializes in the financial services industry. "This has been a niche market so far, but it is poised to experience rapid growth."

While awareness is high, are consumers willing to actually use one of these financial institutions? The survey asked both Internet users and the general population how willing they would be to use an Internet-only bank if "the rates and fees were attractive."

Forty-four percent of Internet users indicated that they would consider an Internet bank for some of their financial service needs. Products most commonly cited as those that Internet users would be willing to use at an Internet Bank are credit cards (25%), savings (22%), checking accounts (21%), and auto loans (19%).

The demographic profile of those willing to use an Internet Bank is exactly as would be expected: young, higher than average income and well educated" said Robert O’Meara, Vice President and Director of Research at RFG.

For nearly twenty years RFG has provided national consumer research to the financial services industry. For more information regarding this recently conducted study, contact Bob O’Meara at 1-800-827-3500 ext. 365.