Internet banking confidence hits a high

Online banking is booming with over two thirds of people (68 per cent) saying they conducted the majority of their banking on the net last year compared to just one in five (18 per cent) in 2005, new research from Lloyds TSB Internet banking reveals.

Over half of people surveyed (57 per cent) say that they used Internet banking more often this year than last year with just one in ten (11 per cent) stating that they never manage their money online.

The real surprise is that a staggering 70 per cent of over 50s claim that Internet banking is their preferred method of money management. Conversely, younger people aged between 18 and 25 are the least likely to manage their money on the web with over a third (36 per cent) preferring to use the telephone or go into their local branch.

The main reason respondents gave for banking online, cited by over half (54 per cent), is that the service is available 24 hours a day, seven days a week. Nearly a quarter (21 per cent) like the convenience of being able to manage their money wherever they are.

Generally, Internet banking users are clued up about the things they can do online including checking their balance, paying their bills, searching their statements and transferring money between accounts. However, a quarter, were unaware that they could set up and cancel direct debits and standing orders online.

Of the one in ten who don’t currently bank online, the main reason given was that they don’t see the need and are happy with the way they bank now (43 per cent).

Anita Hockin, head of Internet, Lloyds TSB said: “The growth of Internet banking is phenomenal and this year is set to break records. We now have over four million registered Internet banking customers and the 2nd January was the busiest Internet banking day we’ve ever had with around ten customers logging on every second. This popularity isn’t surprising given the convenience of banking online. It’s possible not only to check your balance, but also to pay bills, set up standing orders and direct debits and move money between accounts at the touch of a button.”

Anita Hockin continued: “The popularity of Internet banking is at an all time high but it is important not be complacent about fraud. Lloyds TSB uses the highest levels of industry-standard security, but by guarding passwords and having up to date anti-virus software and firewalls, customers can bank online in the knowledge they are safe.”