Golden age for online banking03 May 2006
New research suggests that the popularity of internet banking with consumers has risen considerably, with banks increasingly keen to market a package that is no longer seen as a niche service.
Analysts from bank Alliance & Leicester have reported that the number of people with at least one online bank account has risen by 63 per cent since 2003.
In addition, 78 per cent of these internet-savvy bankers conduct the entirety of their finances online with just internet bank accounts ¿ exactly double the proportion recorded two years previously.
Papering over cracks
In yet further evidence that the use of paper as a communication medium is on the decline, the Alliance & Leicester survey revealed that 70 per cent of people prefer to check bank statements online, with paper statements making it harder to keep track of financial situations.
Helen Palmer, current accounts' manager at the bank, explained: "With our busy lifestyles, internet banking is more convenient for many people than traditional branch banking. Banking online allows customers to address payments and bills without having to deal with reams of paper."
Traditionally, the major stumbling block when it came to encouraging uptake of online bank accounts was security concerns, but Britons are apparently not wise to the dangers of regular or offline bank accounts.
Ten per cent of UK residents do not destroy their paper bank statements, which vastly increases the risk of falling victim to identity theft con artists.
This does not mean, however, that the security implications of online banking are no longer being taken into account, as 52 per cent of customers are still receiving phishing emails in their inboxes, with bogus individuals purporting to be genuine banks.
But Andy Muddimer, head of internet banking at Alliance & Leicester, assured people considering getting online that "online fraud is a very small percentage of fraud overall".
Total management
As the nation's fondness for online banking increases and traditional paper methods decreases, business managers could take the next logical step and conduct the management of their accounts online as well as their finances.
BT Business Accounts for phone and internet connections can be managed entirely online, where users can examine and pay their latest bills, review recent call histories and also inform BT of changes of address and so forth.
By managing their BT business internet connections online, bosses of small firms can view their existing package and arrange for upgrades.
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