# O **NEWS RELEASE**

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| ## Comptroller of the Currency      | ##### NR 2000-84               |
|                                     |                                |
| Administrator of National Banks     |                                |
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FOR IMMEDIATE RELEASE Contact: Dean DeBuck

October 27, 2000 (202) 874-5770

**More National Banks Offer Internet Services,**

**But Active On-Line Customers Are Few**

WASHINGTON \-- The number of national banks that allow customers to
conduct financial transactions on their internet sites increased 52
percent from September 1999 to July 2000, according to analysis
conducted by bank examiners from the Office of the Comptroller of the
Currency (OCC). Thirty-two percent of national banks had transactional
Web sites in July compared to 21 percent in September 1999.

A growing number of small banks (those with less than \$100 million in
assets) are offering transactional Web sites, although they are less
likely to provide services over the Internet than larger institutions.
Seventeen percent of small banks offered transactional internet banking
in July 2000, an increase from 7 percent in September 1999.

Thirty-eight percent of national banks have no Web sites at all, either
transactional or informational. In September 1999, that figure was 46
percent. Forty-eight percent of national banks said they have no plans
for transactional Web sites, with small banks accounting for most of
that group. Nearly two-thirds of the banks with less than \$100 million
in assets said they do not intend to offer transactional internet
banking.

Customer use of transactional Web sites at national banks is growing but
remains at modest levels. Four to six percent of the national banks with
transactional Web sites report that over 25 percent of its on-line
customers are regular users of internet banking services. Overall, the
majority of national banks with transactional Web sites have less than
10 percent of their on-line customers who are regular users.

The product offerings most often used by customers on national bank
transactional Web sites are those involving balance inquiry, funds
transfer among accounts and bill payment.

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| The OCC attaches a high priority to the supervision of national bank  |
| internet activity. By yearend, the OCC plans to have completed        |
| on-site examinations of all national banks with transactional Web     |
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| sites as well as OCC-assigned independent service providers to        |
| financial institutions. The OCC has also undertaken a vigorous        |
| internet training program for examiners. Approximately 300 examiners  |
| have received training, including the 95 OCC specialists in           |
| information technology systems, who received advanced training.       |
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| The OCC charters, regulates and examines approximately 2,300 national |
| banks and 56 federal branches of foreign banks in the U.S.,           |
| accounting for more than 56 percent of the nation's banking assets.   |
| Its mission is to ensure a safe and sound and competitive national    |
| banking system that supports the citizens, communities and economy of |
| the United States.                                                    |
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