Convenience, Access and Time Savings the Top Reasons to Bank Online

Convenience, Access and Time Savings the Top Reasons to Bank Online

Bank of America study examines why consumers begin banking online

CHARLOTTE, N.C., Dec. 28 /PRNewswire/ -- Convenience, time savings and around-the-clock access to account information are the top three reasons why more consumers are turning to online banking, according to a study by Bank of America.

The growth of online banking remained brisk in 2004. Bank of America remained No. 1 with 12.4 million online customers, compared to 7.2 million at this time in 2003. The bank has 5.6 million online bill payers, compared to 3.2 million at this time in 2003.

The new research revealed that reasons for online adoption are heavily influenced by generation. Gen X and Gen Y customers view online banking as a routine part of their daily lives. These consumers value ease of use and educational features that enhance the online experience.

However, baby boomers - often with more complex banking needs - view security as the primary factor in adopting online banking. They want a full range of features, but presented in an easily understood format. The survey also revealed that the No. 1 impediment for consumers to online banking is security.

Customers can help reduce the chance of fraud by using online access to account information and eliminating paper statements and bills that go through the mail, said Sanjay Gupta, e-Commerce executive at Bank of America.

To further ease consumers' security concerns, Bank of America offers an "Online Banking Guarantee," which includes a $0 liability promise for any unauthorized activity originating from Online Banking, including Bill Payment.

Overall, when consumers were asked, "What prompted you to start banking online?" 64% cited 24-hour access to their accounts, 54% noted convenience and 48% answered that online banking saved time.

"For most consumers, the primary impetus for banking online is the inherent value in time savings and convenience," Gupta said. "Our goal is to use a variety of methods to understand what we call 'Voice of the Customer,' then introduce new products and services that make it easier for customers to bank online."

Bank of America solicits customer input through focus groups, surveys and e-mails. Based on customer feedback, the bank has introduced a number of features that make online banking more convenient for consumers, including:

- Person-to-person transfers - Bank of America recently introduced a free
money transfer feature that enables consumers to move money from their
personal checking, savings, line of credit or credit card accounts to
other Bank of America personal deposit account customers.
- Statement suppression - Bank of America makes it possible for customers
to stop receiving paper statements in the mail, therefore avoiding
messy filing, while also conserving our natural resources. Customers
who suppress their statements still get all the same information that
they get today in their paper statements, but promotional materials
will not be included.
- Online alerts - Online alerts can be set up to notify customers of
important events related to their checking accounts. For example, a
customer can set up an alert that notifies him via e-mail that a direct
deposit has been made to an account or that the account balance has
dropped below a particular amount.

About Online Banking


Bank of America is a leading provider of online financial services, and its online site, http://www.bankofamerica.com/ , has received widespread recognition. In the summer of 2004, The Customer Respect Group ranked Bank of America No. 1 among commercial banks for the way it treats customers online. Jupiter Research ranked Bank of America No. 1 in its CORE rankings; Vividence ranked bankofamerica.com No. 1 in experience for customers and prospective customers; Forbes ranked the site among the Best of the Web; and Nielsen NetRatings called it the Top Financial Web site, based on traffic and the length of time customers spend on the site. The Gomez Scorecard ranked the Small Business Web site No. 1 in the Single-Owner Home-Operated (SOHO)/Micro category. comScore Networks, Inc. called Bank of America "the clear leader" in the rate of adoption of online bill payment and the leader of the industry based on overall number of active online customers.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving 33 million consumer relationships with more than 5,800 retail banking offices, more than 16,500 ATMs and award-winning online banking with more than eleven million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 150 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 85 percent of the Global Fortune 500. Bank of America Corporation stock (ticker: BAC) is listed on the New York Stock Exchange.

http://www.bankofamerica.com/


Source: Bank of America

CONTACT: Betty Riess of Bank of America, +1-415-622-6397, or
betty.riess@bankofamerica.com

Web site: http://www.bankofamerica.com/


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