Billion dollar shift to online banking

Small and medium enterprises (SMEs) are part of a growing movement towards online banking that saw the amount deposited online grow by more than $2 billion to $9 billion in the June 2007 quarter.

Deposits held by SME internet bankers and consumers increased by 4% in the June quarter 2007 alone, according to results collected by MISC Australia. By contrast, normal bank deposits dropped by $1 billion in the three months to June 2007.

SMEs and consumers now hold a record 25.7 million online accounts, thanks to an extra 90,000 users opening online accounts in the June 2007 quarter.

The rush of new participants into the superannuation system in the lead-up to the cut off for being able to deposit $1 million into super before July may explain the big jump in the number of online accounts, and the additional 1.5 million transfers that took place, according to MISC.

Most of these transfers were to external accounts, suggesting people were using online accounts to manage transfers to their super accounts, MISC argues.

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