Britons back online banking on balance

03 March 2006
Around a third of the UK population are currently making the most of the internet to manage their finances.

New research from Alliance & Leicester shows that 29 per cent of Brits use internet banking to check their balances or pay off debts at least once a week, while ten per cent do so every day.

The random poll of 2,395 people also found that over half of us (59 per cent) now conduct the majority of banking business over the internet.

Wholly online banks can offer better interest rates because of reduced overheads, but around three quarters of consumers questioned said it was the convenience of general online banking they valued.

People like the simplicity of being able to check their balance and make transfers or payments without visiting a branch, although that option usually remains open for more complicated operations.

A decisive 96 per cent of people who visit Alliance & Leicester's internet banking website do so to check their balances, while 76 per cent use it to transfer funds between accounts.

However, according to Alliance & Leicester's 2020 forecast 78 per cent of people like to know there is a branch available should the need arise.

It believes a combination of online and branch banking will likely remain the norm for the near future, although 13 per cent of people said they had security concerns.

Andy Muddimer, head of internet banking, said: "The pressures of modern life mean that internet banking is the best option for many UK banking customers."

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