Consumers spent nearly $2 billion for Internet services in 1996, but financial services companies cashed in on less than ten percent of those services. That share is expected to surge though, hitting 39 percent by 2003, according to a report on "U.S. Consumer Internet Fee- Based Services Markets," by Frost & Sullivan, a Mountain View, CA- based consultancy.

Within the financial services sector, nonbanks hold a slight edge over banks in collecting fees for Internet services. That lead is predicted to grow steadily during the forecast period, with nonbanks projected to collect a 55 percent share of Internet financial service dollars in 2003 and banks claiming 45 percent.

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