Posted January 24, 2010 by Simon in News

Online banking exceeds 50{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} usage by internet users

Internet banking has only been around for the past 12 years, but a recent survey by  the Consumer Payments Survey (CPS) indicates that the popularity is increasing so much, that for the first time, over 50{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} of regular internet users (41.4m) are now banking online.  This represents an online banking user base in excess of 22m people!

One casualty of the increase online banking usage has been telephone banking.  Back in 2005, 16.1m account holders used this service, but this has declined in 2009 to 14.5m, a drop of over 10{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1}.

The move away from traditional banking services is not surprising  as online banking software now gives the user a wealth of features to manage their accounts, giving them complete control and no need to listen to how important our call is whilst stuck in a queue.

As you would expect, the most popular online activities are checking account balances (95{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1}) and statements (83{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1}), though enquiries about thier account still appear more popular through the traditional telephone banking route (60{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1}) rather than online (20{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1}).

Katy Worobec, Head of Fraud Control at Financial Fraud Action UK commented:

“Online and phone banking has totally changed the way we manage our accounts, enabling us to keep a much closer eye on our finances outside of traditional banking hours.”

With the continued increase in banking online, fraud and e-mail scams are constantly something to keep aware of, but you can keep your risk low by not revealing your login details and applying common sense.

Katy added:

“The chances of becoming a victim of online or phone banking fraud are low, but there are a number of common sense steps that people can follow to significantly minimise the chances of becoming a victim of fraud. Our new guide detailing this advice can be downloaded from www.financialfraudaction.org.uk.”

“Online and phone banking customers should make sure they remain wary of unsolicited emails or calls from people claiming to be from their bank. You should never tell anyone what your PIN is and you should never enter personal details after accessing a website via a hyperlink in an email.”

Consumer Payments Survey (CPS) provide a continuous quantitative market research survey that was commissioned in 2007 by the Payments Council (the organisation that sets strategy for UK payments). The main purpose of the CPS is to provide a detailed breakdown of the use of payment methods by the personal sector and track changes over time.

The new website (www.financialfraudaction.org.uk) will be launched in early 2010 but in the meantime www.cardwatch.org.uk provides tips for cardholders to help prevent them from becoming a victim of card fraud.