Net option clicks with bank customers

By AINSLEY THOMSON

More New Zealanders are banking online, using a mouse to keep track of finances rather than a trip to the local bank, latest figures suggest.

WestpacTrust, the country's second-largest bank by assets, says the number of customers registered for its website nearly doubled last year.

The bank now has 150,000 customers registered for online banking, which is an increase of around 83,000 since December 2000.

Other banks have experienced a similar growth in their online services.

ASB Bank's head of retail banking, Barbara Chapman, said it had 150,000 customers registered as online users.

The ASB online service had been growing rapidly since it began in 1997.

Growth rates had averaged around 125 per cent during the past two years.

A Bank of New Zealand spokeswoman, Jacqui Millar, said there had been a 62 per cent increase in registrations for internet banking in the past year.

The figures back a financial institutions analysis by KPMG last year which showed customers still like bank branches but want their bank to offer the latest smart services.

Customers would use the web to compare rates for mortgages but most still prefer to clinch a mortgage deal by personal contact and did not want to post confidential information on line.

"For the moment, the banking industry must work at excelling in a 'clicks-and-mortar" environment," the report concludes.

A Massey University senior lecturer in banking, David Tripe, said the growth of online banking would not end the reliance on branches.

"The banks would love it if it was, but quite frankly if someone gives you a cheque, using online banks won't get rid of that cheque," he said.

"Some banking matters can be done much more effectively other ways."

He said the big question for banks was how much more growth could they expect in the online banking area.

Mr Tripe could see good and bad points in New Zealanders' increasing use of online banking.

"If you are using your computer in ways that lets you reduce tedious and mundane activities and makes them simpler and more fun, well that's good," he said.

"But if using your computer prevents you from interacting with other people in a normal way, that's fundamentally unhealthy."

Otago University senior lecturer in marketing Dr Sarah Todd said the increase in online banking matched a lifestyle shift to people wanting easy convenient services, identified in a study she had done.

"There is a whole trend towards convenience in our lives," she said.

Frustration with queues for tellers and encouragement to use the online services from the banks were other reasons people would opt for the more convenient banking method.

But Dr Todd said banks were still finding a lot of resistance to online banking.

Many customers are content with telephone banking and cannot see the advantage in online services.