Online banking popularity overtakes phone banking

There have been growing concerns from both consumers and some professionals with regards to the dangers and the levels of Internet fraud that could potentially threaten those that choose to bank online. However, recent figures released with regards to Internet and telephone banking have shown that consumer confidence in online banking is not only high but is also increasing, and for the first time last year Internet banking seemed to be overtaking telephone banking in the popularity stakes.

Although there are concerns about the risk of fraud in relation to online banking and financial transactions, industry experts have reassured consumers and have stated that as long as they are careful and sensible when using their online banking facilities they should not run into any problems. Consumers are advised never to provide their bank account details in response to an email that looks as though it has come from their bank, and not to access their bank's website through an email link. Instead, online bankers should use the web browser to access their bank's secure site before revealing any details or conducting financial transactions.

Figures released last year showed that around seventeen million people now hold online bank accounts, and the growing number of major banks offering online facilities seems to have helped in terms of consumer confidence. In addition to this, there are now a number of banks that operate exclusively online, giving UK consumers even more choice when it comes to finding the right bank. Consumers are able to enjoy convenience and ease when banking online, and can conduct the majority of transaction that can be conducted via the branch or on the telephone.

Around two thirds of online banking customers go online at least once every week to check their accounts or to conducts transactions. An APACS spokesperson stated: "Our research shows that increasingly, if you are under 35, you are more than likely to be turning to the internet rather than the phone to manage your finances."