Argentinan increment on online banking

The Government of Argentina's capital movement restrictions known locally as the "corralito" clogged banking services with long lines of people outside banks waiting to be assisted by a bank employee. In seeking an alternate way to access real time financial information and pay bills, many tech-resistant people have become eager users of the internet for banking transactions.

The Government of Argentina's capital movement restrictions known locally as the "corralito" clogged banking services with long lines of people outside banks waiting to be assisted by a bank employee. In seeking an alternate way to access real time financial information and pay bills, many tech-resistant people have become eager users of the internet for banking transactions.

The number of home banking users had been growing steadily in 2001 but the growth curve during the month of December simply rocketed. The first half of 2002 shows continued growth in the on-line payment of bills.

The explosion of web transactions through bank portals rose 500% and the number of home-banking users rose an average of 250% per bank. The Argentine bank Banco de Galicia reported that the institution had been adding 4,000 on-line banking users per month prior to December 2001 but that number rose to 30,000 at the end of the year due to banking restrictions. Bank Boston witnessed the same trend. Their number of users doubled and the number of on-line transactions tripled.

Argentine Government regulation that limited cash payments forced people to use the banking system for electronic transactions thereby giving a significant push to the use of on line services, ATMs and debit cards. Banks reported an increase of 70% in ATM transactions and a 750 % increase in the number of purchases made with debit cards