Online banking to grow to 16 mn | india | Hindustan Times
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Online banking to grow to 16 mn

An estimated 4.6 mn Indians prefer online banking services and the number is expected to grow to 16 mn plus by 2007-08.

india Updated: Mar 09, 2006 12:08 IST

An estimated 4.6 million Indians prefer online banking services and the number is expected to grow to 16 million plus by 2007-08, according to a recent study.

The study mandated by the Internet and Mobile Association of India (IAMAI) revealed that there were two kinds of online banking users: those who used it for gaining information and those who conducted financial transactions.

Around 81 per cent of the users used the online format for checking account balance while 24 per cent used for cheque clearance. Around 76 per cent used it for transferring funds and 63 per cent for paying bills.

Currently, 51 per cent of the consumers use it because it is convenient and 44 per cent for saving time, it said.

The study revealed that online banking was more acceptable among the younger lot with 68 per cent of the users falling in the 18-35 age group. The educated also preferred online banking with 85 per cent of the users being those with graduate degrees and above.

The increase in in online banking indicates that as Indians gain more and more experience online, they are more likely to do financial transactions like online shopping, online banking and online trading, it said.

Online banking was expected to grow with the current 38.5 million internet population growing to 100 million by 2007-08.

However, the risk of phishing (practice of trying fradulently to get consumer banking and credit card information), poses an hurdle to the popularity of online banking, the study, which comprised 6365 respondents, said.