In 1995, when Web-based banking was launched, customers in 600,000 American households actively banked or paid bills online. That number grew to 33 million households by last year, according to the newsletter Online Banking Report.

The number of people banking online more than doubled from March 2000 to October 2002, increasing more than any other computer activity measured by the Pew Internet & American Life Project in that period. Three out of 10 Internet users banked online in October 2002, according to the report, released in December.

For years, concerns about online privacy, financial security and ease of use have hindered the growth of online banking. Experts said some of the concerns are legitimate as online criminals use sophisticated techniques like keyboard logging, which tracks what is typed on a computer, and luring people to fake Web sites to capture personal information -- a technique known as "phishing."

But more customers are willing to take the plunge after first trying, and surviving, online purchases, the booking of flights and other online transactions.

Source: NewsDay.com