Mounting Interest In Online Banking, Says Jupiter

The Online Financial Services Forecast 2001-2007 examined activity in seventeen European countries and found that almost 40% of the total internet population now banks over the web. Germany, with approximately 16 million, has the largest number of online banking users but penetration levels are highest in Sweden where 54% of web users bank over the internet. This supports the findings of a recent study by Nielsen//NetRatings (see Over 18m Europeans Bank Online, Sweden Leads The Way).

By 2005, the European average will reach 48% but growth will subsequently slow and Jupiter estimates that it will take until 2007 before the number of online bankers exceeds 100 million.

Despite encouragement from financial institutions, European customers are reluctant to make transactions online. By the end of 2002, just 11% of internet users will pay bills online while only 0.3% will apply for mortgages via the web. The convenience of direct debits will restrict growth of online bill payment to only 22% by 2007.

Online brokerage also remains a minority activity and accounts for just 5% of internet users in Europe. A recovery in the financial markets and increased maturity of the online channel will see this increase to 10% in the next five years.

European Online Banking Users
Year	Users (m)	Penetration (%)
2001	41.2	34
2002	54.1	39
2003	67.4	43
2004	79.5	46
2005	89.4	48
2006	97.1	50
2007	103.1	51
Source: Jupiter Research, November 2002