Internet banking in Europe to triple in three years

The number of Europeans banking on the Internet is set to triple in the next three years, according to a report published by investment bank JP Morgan (JPM).

The report predicts that explosive growth, combined with increased competition, will drive down banking charges and could result in up to E6.9bn (£4.6m) being wiped of European banking profits.

Huw van Steenis, e-finance analyst at JPM, said in a statement: "The increasing wanderlust of the online consumers will drive transformation of banks' operating models."

According to JPM, the number of individuals with online accounts will rise from 20 million this year to 55 million in 2003 - 22 per cent of consumers - with the highest penetration in Sweden (50 per cent), Switzerland (36 per cent) and Germany (25 per cent).

By 2003, a third of new savings and 19 per cent of mutual funds business will be made online.