Online Banking Not Attracting New Users at Same Rate

According to the latest Pew Internet and American Life Project survey, online banking adoption didn’t grow last year anywhere near the rate it did in the previous two years. How can this be when the benefits of online banking (to consumers and banks alike) are so clear?

Some analysts attribute the lack of growth to a “trust gap”—scary media messages about phishing and identity theft pushing people away. While trust is certainly an issue, new research released today by Change Sciences Group suggests that the trouble with online banking is more fundamental. Online banking is simply too hard to use for first time users.

“Let’s say you’ve heard from a friend that you can save time by paying your bills online and you visit your bank’s web site to try it yourself. On most bank sites you’re about to get confused, frustrated and annoyed,” said Steve Ellis, a Change Sciences partner.

Examples of things people are likely to encounter include:

• No clear starting point

• No clear starting point once you log in to your account for the first time

• Arcane terminology like “payee”

• Clunky transaction searching

• Lack of messages that will help you feel secure

• Lack of information that will help you take steps to ensure your security

The three best sites overall are:

1. Wachovia

2. Bank of America

3. Marshall & Ilsley

The complete list of sites reviewed in the report includes: Allstate Bank, Bank of America, BB&T, Charles Schwab Bank, Chase, Citibank, Citizens Bank, E*Trade Bank, Fifth Third Bank, First Tennessee, Marshall & Ilsley, National City, NetBank, PNC, Regions, Sovereign Bank, State Farm Bank, SunTrust, US Bank, Wachovia, Washington Mutual, and Wells Fargo.