Nationwide celebrates ten years of Internet banking

Nationwide Building Society is celebrating the tenth anniversary of the launch of the UK's first internet banking service on 27 May 1997.

Over the last decade, internet banking has developed into a sophisticated and immensely popular facility. New research conducted by the Society shows that over a third (37%) of adults now use internet banking.

In 1997 just over 13,000 customers registered for Nationwide's internet bank. Over the last decade this figure has steadily increased to over three million people and this growth is set to

Those who registered ten years ago have seen the internet bank develop into a system that allows users to manage all of their personal finance needs and even vote at the Society's forthcoming AGM. Over half (53%) of internet bank users bank online because they believe it is convenient. Half (50%) of users also say internet banking is easy to use, with a quarter giving speed as their reason for banking online. One in ten (11%) say they use internet banking because they can't always get to a branch, with just 4% saying they access internet banks because it reduces their paperwork.

As internet banking has developed across the industry, more and more people have decided to manage their finances online. Now, just over one in ten adults (11%) have used internet banking for more than six years and a further 20% of people have been logging on for 4-6 years.

Two thirds (66%) of internet bankers log on at least once a week. 9% of men say they check their internet bank every day compared with 6% of women. Over two-thirds (70%) of all internet bank users manage at least half of their personal finances on the internet with 12% of internet bank users managing all of their banking needs via the facility.

Nearly all internet bankers (93%) manage their current account online with two thirds (66%) managing their savings accounts online. Half of users (50%) manage their credit cards online whilst less than a fifth of users access their personal loans (14%) and mortgages (17%) via internet banks. Half of users (49%) log onto their internet banks to manage these accounts after 6pm in the evening with just under a third (31%) logging on during the day (8am - 6pm).

For those that do not use internet banking, one in four (23%) state it's because they prefer to deal with people face to face or over the telephone.

People also have different views on the safety of internet banking. Only a third (31%) of people who don't use internet banking think it is safe whereas over four fifths (86%) of internet bank users think it is safe.

Commenting on the anniversary, Mik Hodsdon, divisional director at Nationwide, said: "This research shows that internet banking has become increasingly popular. Customers have the convenience of banking from the comfort of their own home, or indeed wherever they are in the world, together with many additional benefits such as discounts and paperless statements. Internet banking has continued to be developed and enhanced over the last ten years and there is no doubt that it will attract more and more users.

"When we launched our internet bank in May 1997, we knew it would be a success with our customers. Since the launch, we have developed a number of systems which make it easier for our customers to do business with us. Today they can complete their mortgage application online, transfer funds from one account to another and they can even replace their paper statements by receiving statements online. It will be interesting to see the advances that technology will bring over the next ten years."