Clicking in Tier-II cities

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16 million users by 2007-08

60 per cent

had 2-3 bank accounts

Major chunk

of male users

Chennai, March 8

There are an estimated 4.6 million Internet users who are banking online today, and this number is expected to grow to 16 million plus by 2007-08, says the Internet and Mobile Association of India (IAMAI).

According to a survey conducted by IAMAI on the current online banking scenario in India, (based on a sample size of 2,240 responses), about 26 per cent of the online banking activity was happening across prominent Tier-II cities and towns. The survey was conducted in December 2005.

Nearly 43 per cent of the online banking users in the survey were in the 26-35 years age bracket.

Nearly 83 per cent of the users were male.

The survey said that about 60 per cent of the users had relationships with two or three banks.

Two types of users

According to Ms Preeti Desai, President, IAMAI, "Online banking has two distinct kinds of users. One type do only information transactions such as checking account balances (81 per cent), cheque clearance (24 per cent) and the other, which also do financial transactions like transferring funds (76 per cent) or pay bills online (63 per cent).

As Indians gain more experience online (50 per cent have been using the Internet for six years), they are more likely to do financial transactions such as online shopping, banking and trading."

Account access

Around 41 per cent of the online banking users access their account from home, 48 per cent from office, nine per cent from cyber cafes and one per cent from their mobiles (refers predominantly to banking alert services).

The survey found that 16 per cent of the users preferred using online banking services over the weekend while about 39 per cent preferred weekdays.

Banking hours

About seven per cent of users bank online between 12 midnight and 8 a.m., 28 per cent between 8 a.m. and 12 noon, 20 per cent between noon and 3 p.m. and 13 per cent between 3 p.m. and 6 p.m.

And 17 per cent use online banking between 6 p.m. and 9 p.m. while 15 per cent prefer using it between 9 p.m. and midnight.

(This article was published in the Business Line print edition dated March 9, 2006)
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