Consumers are becoming increasingly comp-literate and are able to interact more fluently with their financial service providers.
Increasing consumer awareness
Mainstream magazines are increasing the amount of coverage given to comp aided topics. As a result, consumers are increasingly aware of alternatives to traditional branch banking.
Large base of installed PCs
Today there are more than 30 million PCs in american homes and consumers now spending more on PCs than TV sets. Modem penetration into house hold is a key issue for home banking, as online services require a modem.
Prodigy & CityBank providing home banking services.
Prodigy providing home banking to consumers since 1988 and has relationship with more banks than any commercial online services.
Customers can check their a/c balances, transfer money between a/c, pay bills electronically, review their CitiBank credit card a/c, buy & sell stock through CitiCorp Investment services.
AOL users will not need to use Quicken s/w to access the banking services. Rather Intuit built a Quicken like application into AOL that will have the basic banking functionality of transferring funds etc.
Banking via the Web: Security First Network Bank(SFNB)
The goal is to provide superior customer service & secure electronic environment.
Internet banking: Consumers do not need to purchase any additional s/w, store any data on their comp, wait for new versions & upgrades, since all transactions occur on a secure server over the internet.
The first Internet bank to provide e-banking services to internet users was SFNB.