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Online banking to become primary customer touch-point within next 10 years, says TowerGroup- Banks must dedicate resources for online banking to become center of consumers' financial life

July 28, 2009 – With the number of online banking users increasing at a global compound annual growth rate of 20% through 2012, TowerGroup believes that online banking will become the primary customer touch point in the next 10 years. According to a recent report by TowerGroup, there are now almost 600 million online banking users in the world, with a projected growth rate that far outpaces that of the branch, contact center and ATM services. The growth of online banking is being driven by both developing economies and a global shift towards online usage among younger generations that lean more towards online and mobile channels for their everyday needs.

"In this competitive market, banks must actively seek customers' business—and online banking is the means for which institutions can aggressively expand their services and product offerings to gain a competitive edge," said Nicole Sturgill, Research Director in the Delivery Channels service at TowerGroup. "Whether it's the mundane daily tasks of paying bills, or the management of long-term financial goals, banks must position their online banking channel to become the epicenter of customers' financial lives. Every bank should be channeling investments and resources to make its website the financial home page for consumers."

In order to thrive in tomorrow's banking environment, TowerGroup recommends that banks focus on bolstering their online banking channel to not only fend off disintermediation by non-bank players, but also to position their websites as the financial center whenever the consumer goes online. Banks have historically been the financial focal point for consumers, and in order to maintain their role as dominant financial advisors, they must dedicate their resources to improving their online banking channel so that customers turn to their website for all of their banking needs.

(This is press release of TowerGroup)

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