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Size of Industry

Page history last edited by lisa.onderdonk@purchase.edu 10 years, 9 months ago

This page describes the overall size of the banking industry and its rapid growth as it has been impacted by the introduction of the internet.

 

 

(In million) Total Revenue Revenue via Internet
Bank of America 73,976 ?
Wachovia 28,445 ?
E*Trade 3,128 3,128
ING 12,973 4,301

 

 

  • Online banking is one of the fastest growing Internet activities in the U.S.

    14 million users (2000) -> 53 million users (2004) according this article->  50% of U.S. Households are expected to have online banking (2008)->this ariticle says "92 million, or 76%, of American households are expected to be banking online by 2011"

    • Bank of America: This article is old (from Jan 06) but says that "Bank of America has the most online banking customers in the world, with 14.6 million subscribers and 7.2 million online bill payers." This article says that "Bank of America, the nation's leading provider of Online and Mobile Banking services, today announced that it has surpassed one million unique active Mobile Banking customers. Mobile Banking allows customers to check balances, pay bills, transfer funds, view posted and pending transactions and even locate banking centers and ATMs, accompanied by maps and directions. The service was introduced nationwide in May 2007 as part of Bank of America's suite of Online Banking services. Nearly 25 million consumers bank online with Bank of America."

    • Bank of America Annual Report(P.34) says, "We added 2.2 million net new retail checking accounts in 2008. These additions resulted from continued improvement in sales and service results in the Banking Center Channel and Online, and the success of new Affinity relationships and products such as Keep the ChangeTM. During 2008, our active online banking customer base grew to 28.9 million subscribers, an increase of 5.1 million net subscribers from 2007. In addition, our active bill pay users paid $309.7 billion worth of bills online during 2008.

  • The history of Internet banking begins as progressive banks realized and harnessed the power of the Internet revolution.

         Overall Revenues for the banks we are focusing on: 

    • Bank of America is a publicly traded company. Investor Relations.  In the year 2008, Bank of America had a revenue of $73,976,000,000. 2008 Annual Report .  
    • E*Trades overall revenue via internet was $3,127.53 (million) Financial Information.

    • ING (last published Quarterly Report) had an overall revenue at the end 2008 of 9,703 million euros or about $12,973 in millions (US dollars). From banking, ING had a total revenue of 3,217 million euros which is equal to $4,226,777,033 (US dollars). 

    • Wells Fargo/Wachovia reported a net loss of $2.7 billion for Q4 2008. Wells fargo investor relations.
    • Three out of the four banks we have researched have a growing profit.  Wachovia is the only business that had a net loss in overall revenue. What is causing this company to not be profitable while the others are growing?
  • To find profitability, we had better compare the number of gross profit.
    • E*trade is not currently profitable:  $-555.85(2008)   $-1,513.28(2007)   $1,345.54(2006) although it was profitable up to 2006 E*trade
    • ING is not profitable: $14,347(2009.1) $25,521(2008.1) $23,911(2007.1)  ING Financial Statement
    • Wachovia: $28,445(2008) $29,380(2007) $25,755(2006)
    • Bank Of America is profitable: 108,882(2008) 106,228(2007) 102,537(2006)

 

 

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