Slow Take-up of Home PCs Balks Online Banking

Online banking will face competition from TV and telephone financial services as middle and low income households continue to hold back on investing in PCs.

According to a report entitled New Media in the Banking Industry, conducted by Inteco, high earners represent the bulk of home computer owners because they are accustomed to using PCs at work and are more confident about exploring opportunities. About 20 per cent of households in the UK have PCs and of that percentage, 40 per cent use them to manage their home finances.

Inteco analyst Mike Welch said: ?By the end of 2001 only 36.4 per cent of households will have a PC. A lot of people don?t use one at work and therefore don?t see the need for one. Convincing them to pay for information is difficult when it?s already available free.?

While high-income households may be tempted to manage home finances over the internet, they also represent a threat to the banks as they seek better services and are likely to switch around, he claimed.

The report stated that outside the high income group, disposable income is spent mainly on entertainment and such households are more likely to be reached via television or telephone financial services.

But Inteco forecast that the total number of households with access to Web-based services through the TV will grow as the number of people developing Web skills at work is always rising.

Inteco: 01483 751777