Internet banking gets a high-five in Alaska: it's easy, fast, convenient and fun, but there are some risks and consumers must protect themselves by making sure security measures are in lace on their home or work computers before banking online.

• Author: Barbour, Tracy
• Position: Technology

Despite consumers' lingering concerns about online security, Internet banking has steadily increased in popularity and is now mainstream.

There are an estimated 31.5 million households currently banking online, and that number is expected to rise to 45 million by the end of 2007, according to a recent Interactive Banking report by online researcher eMarketer. More than 30 percent of all U.S. households will be doing at least some portion of their banking on the Internet by 2006.

People have unquestionably adapted to online banking services, according to eMarketer's research. They use them, like them and have come to demand them.

This mounting trend also is playing out in Alaska, where Internet banking is prevalent among Wells Fargo Alaska customers. "Over half of our consumer checking accounts are accessed online," said Elaine Junge, vice president of marketing. "That's consistent with Alaska's percentage. And more than two-thirds of our commercial customers are banking online."

Wells Fargo was the first to offer Internet banking in May 1995, according to Junge. Since then, it has been named the No. 1 Consumer Internet Bank (December 2004) by Watchfire [R] GomezPro and the Best Consumer Internet Bank in the world by Global Finance. The bank also has received numerous awards in other areas, including online bill payment, online credit and cross-channel customer experience.

Alaska USA Federal Credit Union, with 270,000 members worldwide, is another early adopter of Internet banking technology. In 1994, the memberowned institution introduced Personal Branch, Alaska's first PC-based account-access service. A few years later, it was converted to an Internet-based access program, now called UltraBranch. Currently, more than 60 percent of members with checking accounts are accessing their accounts online, said Nancy Bear Usera, senior vice president of corporate development.

"Internet account access is not a substitute for personal service, but an enhancement to a total commitment to serving members in the manner they best prefer to do business with their credit union," Usera said.

At Northrim Bank, a full-service commercial bank that's been offering interactive services for about four years, there's a smaller, but significant, percentage of online customers. About 7,500 customers-slightly more than 25 percent-are using Internet banking, said Blythe Campbell, assistant vice president/public relations manager. Interestingly, customers who think of Northrim as their primary bank are heavier users than those who also do some of their banking elsewhere.

Virtual banks offer an emerging alternative for online banking-for individuals willing to...