Financial institutions of all sizes are opening virtual branches that offer higher savings yields and lower interest rates in an effort to lure more customers.
Growth will continue to slow to 6.7 percent next year and just 6 percent through 2011, when eMarketer expects 48 percent of the U.S. online adult population to do some form of banking on the Internet.
"Nevertheless, financial institutions from banks to insurance companies are trying to move more business online, where the operating costs are lower and profit margins higher," says Ms. Phillips.
By 2010, Aite Group predicts 13% of all checking accounts will be opened online in the US, up from just 3% in 2006.
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