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March 12, 2006

"4.6 million Indians bank online"

A Business Standard report quoting a December 2005 study by the Internet & Mobile Association of India (IAMAI) and Cross Tab Marketing Services, says that an estimated 4.6 million Indian Internet users currently bank online and that the number is expected to cross 16 million (inclusive of Internet and mobile banking) by 2007-08.

Online banking user traits

* 60% had relationships with 2-3 banks while 59% have 2-3 bank accounts

* 25% users were in the age group of 18-25, 43% in the group of 26-35, 19% (36-45 years), 10% (46-60 years) and 2% (61+)

* 83% are males; 17% are females

* 41% access their online banking account from home

* 51% cited convenience as the most important factor to bank online

* 38% said that they liked the facility of checking bank balances and statements online

* 45% operated their online banking accounts on weekdays and weekends; 17% use online banking between 6-9 pm and 15% between 9-12 pm

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.