At a time when surveys are showing growing distrust of online banking efforts by U.S. consumers, many are utilizing the Internet to choose their Health Savings Account custodians. Ongoing studies by Information Strategies, Inc. (ISI) show little or no slackening in depositors’ interest for online HSA accounts. ISI’s studies show that the number of HSA depositors with accounts more than 300 miles from home has held steady at 62% with a majority utilizing online portals for their transactions. At the same time, other studies show a marked decline in consumer perceptions of online banking. Lack of trust in online banking among U.S. consumers is a serious constraint because of doubts about banks' security measures, according to eMarketer's new report, "Online Banking: Remote Channels, Remote Relationships?" The result is a slowing rate of adoption, with online banking households increasing by only 3.1% in the last quarter of 2005 -- the lowest increase in three years. The number of online banking households as a percentage of total online households is pretty stagnant, too. It is expected to grow by just 4 percentage points between 2006 and 2010. The key factor in customer attitudes is the perception of website security. Being able to trust a banking site is extremely important to customers, with more than 87% saying in an Ipsos Insight survey that they wanted assurance that the bank would not sell their personal information and 83% wanted assurance that such data was protected from hackers. "Security is not a luxury to online banking users, and it cannot be for online banks," says Lisa Phillips, eMarketer senor analyst, who wrote the report. She pointed to the fact that 75% of European consumers do more than half their banking business online, compared to 38% of Americans. Europeans have confidence in Internet financial transactions as a result of more advanced authentication and ID policies. eMarketer's "Online Banking: Remote Channels, Remote Relationships?" report answers questions such as: -- Which demographic groups present the most opportunity for online banks? -- What causes consumers to switch online banks? -- What do consumers consider the most important feature of a banking site? | 
