Internet Marketing Opportunities.

• Position: For banks - Brief Article

The Internet adoption rate among consumers over the past five years has been slow but steady. Today, 61 percent of households own PCs and 59 percent of households are using the Internet for personal reasons, whether at home, work or school. These statistics, part of a study by the Tower Group's Primary Market Research, show that the Internet is now definitely mainstream. Yet the same research shows that while most consumers are willing to log on to it, they're not willing to bank on the Internet yet.

"They may adopt online banking but they're not embracing it," explains Michael Weil, the managing director of Primary Research for the Boston-based Tower Group. "They can't see a good reason to give up the branch. There could be barriers there from security, or they're just more comfortable going to the branch."

The good news is that even though online banking hasn't replaced the physical branch, the awareness level is high. Of all those surveyed that actually use the Internet, 90 percent say they're aware that financial institutions offer some type of online banking service. Almost three-fourths know their own bank offers it, but only a third have actually used it.

Yet online banking remains as a real opportunity for small banks to tie their customers to them, in conjunction to the branch network, for a higher level of personalized service. As part of a persuasive products and services proposition, banks have to use a range of delivery channels available to them.

"Six out of every 10 people that walk through the door more than likely can access the Internet and therefore are potential customers for online banking," stresses Weil. "That's an ideal opportunity to market. It's taking a while, but you can't give up on it."

Pointing to ATMs, which took years to catch on but can now be found everywhere, Weil claims that "channels don't go away, you just get more of them." The best place to market your online wares may just be your offline arena. With 92 percent of households visiting the bank branch at least once a month, setting up an Internet kiosk in your branch is pretty much a no-brainer.

If you can teach them within the branch environment of trust that, conceptually, it's safe...