Price comparison website Moneysupermarket.com has said that banks no longer have the competitive rates to compete with internet personal loans companies so they must "rely on inertia".
Many people do not shop around for financial products, as they are more comfortable dealing with their local bank branch in person than a faceless company over the internet.
Peter Gerrard, senior researcher for Moneysupermarket.com, said the potential savings should outweigh the loyalty complex people have to their local lender.
"There will always be some people who will stay with the same bank and not look to move, who prefer to deal face to face rather than online.
"It is so easy to compare and buy products [on the internet]," Mr Gerrard continued. "A bit of time is needed but it could be well worth it."
Recent research shows the difference between a loan on the internet and one from a bank can be as much as six per cent for the same amount and repayment term, yet the high street still retains business, much to the chagrin of industry analysts who are trying to encourage more people to shop around.To read more about loans, click here.
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