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Nearly 39 million households in the U.S. are expected to be online by the end of 1999. With so much credit information just a few clicks away, consumers now have the opportunity to shop for financing from the comfort of their easy chair. The ease and convenience of the Internet makes it a natural for researching personalized credit products, with the availability of credit information giving consumers greater control over their sources of financing.
Forrester Research Inc. has recently issued a report that estimates that consumers will obtain 8.9 million loans and credit cards over the Internet by 2003. By that time, online mortgages are expected to capture almost 10% of the total market. In the meantime, virtually every credit card issuer will be using the Web as a customer acquisition channel. Within five years, one out of every six credit cards issued will be obtained online. Other credit products, such as auto financing, home equity loans and student loans won’t be far behind.
For the report, “Credit At The Threshold”, Forrester interviewed over 50 lending institutions including banks, credit unions, and consumer finance companies, speaking at length with some of the leading vendors and service providers in the credit marketplace. Over 80% of these institutions indicated that they will offer online credit applications by early next year, and more than 60% will approve or deny applications online before the end of the year.
Additional information about Forrester Research can be found at www.forrester.com.
