Internet banking set to boom
28 December 2005
One in five Britons (18 per cent) did most of their banking online in 2005, according to a new report from Lloyds TSB Internet banking.
The findings also show that a fifth of the population (20 per cent) have used the web more often this year to manage their money.
Young people aged 25-34 are most likely to do their banking on the Internet (27 per cent), but 22 per cent of those aged 35-44 also use the web to organise their finances as do 20 per cent of those aged 45-54. Men are slightly more inclined to use the web (20 per cent) than women (15 per cent).
Despite the growing popularity of Internet banking many people still aren't aware of all the financial tasks they can do online. A fifth (23 per cent) did not know they could check their balance on the web, while a third (28 per cent) didn't realise they could go online to pay bills. A similar number (29 per cent) didn't know they could use online banking to search for statements, while 34 per cent weren't aware they could also transfer money or manage direct debits.
Although a third (35%) indicated fears over security as being the reason they didn't bank online, the vast majority of those surveyed (65 per cent) had no such fears and felt Internet banking was safe.
Matthew Timms, Internet and ATM director, said: "The growth of internet banking is phenomenal. Lloyds TSB alone now has over two million active customers using its Internet banking service. This popularity isn't surprising given the speed and convenience of banking online. However, we also recognise that some people are apprehensive about using the Internet to manage their money.
"Internet fraud is an issue the industry has been confronted with in recent years. In tackling online fraud it is not only important that banks have all the systems and measures in place to ward off criminals, but also that customers know how to protect themselves.
"Lloyds TSB uses the highest levels of industry-standard security, but beyond that we have taken huge steps to ensure our customers are well protected. Our website provides all the necessary advice on all aspects of Internet fraud, and it also offers discounted anti-virus software to help customers protect themselves online. We have also begun a trial of a new access code device which customers can use to log on to Internet banking. The device generates one-time-only passwords preventing the customer from disclosing all their log on details."
