21 Per Cent Of U.S. Internet Users "Very Likely" To Try Online Banking

ATLANTA, June 21, 2000-- One in five American Internet users says they are "very likely" to try Internet banking within the next 12 months, according to a new survey of online banking and trading intentions around the world, released by Angus Reid Group.

The study suggests that the sheer size of the American market-- currently about half of the world's 50 million online banking customers-- makes it a formidable market presence.

But despite the heft of absolute numbers, those Americans surveyed were relatively lukewarm in adopting online financial services, compared to others around the world.

Approximately 21 per cent of American Internet users described themselves as "very likely" to bank online in the next 12 months, while the world's most enthusiastic Internet bankers are in South Africa (46 per cent), Germany (42 per cent) and Sweden (33 per cent). Least enthusiastic are those in Egypt and Russia (2 per cent each).

The findings are based on interviews conducted in the U.S. and 33 other countries as part of Angus Reid's The Face of the Web study of global internet usage and habits, the most comprehensive study of its type ever conducted.

"While Americans appear to have been relatively slower to adopt online banking, this could be a result of the wide range of delivery options open to them," said Ashif Ratanshi, president and CEO of Royal Bank's Atlanta-based Security First Network Bank. "The bottom line here is phenomenal growth potential, which will accelerate in the future, as online functionality increases."

Of those Americans surveyed who have tried banking online, three in four say they're "very likely" to continue, the survey suggests. "We're encouraged," said Ratanshi. "It confirms our belief that we have a viable delivery channel available to our customers."

The survey also found a somewhat more moderate attraction to online stock trading and other Internet-based investing services. About one in ten American Internet users says they are "very likely" to trade or make other investments online in the near future. The figure was similar in Canada, while Internet users in South Korea (18 per cent), Singapore (14 per cent) and Germany (14 per cent) ranked highest among the countries surveyed.

"We're finding across the world that as people go online, banking is one of the commercial applications that has an immediate appeal," said Gus Schattenberg, Angus Reid Group global products vice-president. "Online banking has a following among users in the most developed Internet markets, but there are even some emergent markets where online banking is carving a niche among the leading edge of users."

The Face of the Web is the most comprehensive international study of consumers and the Internet ever done, based on a total of 28,374 interviews with Internet users in 30 countries and general consumers in 34 countries in November and December 1999 and January 2000.

Established in 1979, Angus Reid Group is among the world's leading research companies, providing a full array of marketing and social research services to the private and public sectors. Founded by Dr. Angus Reid, it has conducted extensive research in 80 countries and 40 languages and serves clients around the world through 10 offices and 300 full-time and 800 part-time staff.

Atlanta-based Security First Network Bank, the World's First Internet Bank, invented Internet banking in 1995. SFNB provides a broad range of banking services via the Internet and telephone, including 24-hour-a-day, 365-days-a-year customer service (877-WWW-SFNB) and the ability to customize reports and conduct seamless interactions among checking, savings, borrowing and credit card accounts. Other services include unrestricted bill payment to third parties, up-to-the-minute account balances, real-time activity tracking, automatic categorization of expenditures, loan presentation, secure online customer care support and Internet stock portfolio tracking. SFNB is a member of the Royal Bank Financial Group (RBFG).

For more information, contact:

Gus Schattenberg Vice President Angus Reid Group (604) 893-1606

Eric Starkman Starkman and Assoc. 212-461-2226