As a result of the wider range of products and prices available at the click of a mouse, high street banks are being forced to drive down the cost of their products, says Moneysupermarket.com.
Personal loans and mortgages provided by Internet-based companies are becoming cheaper as a result of the lower running costs associated with online businesses.
There is also a greater range of choice and it has become easier to compare products with the use of a variety of online search engines and comparison websites, which has helped to create a much more competitive money-lending market.
Senior researcher from Moneysupermarket.com, Peter Gerrard, noted that there are a greater number of people shopping online today than at any other time in the history of Internet financing: "They are realising that the high street is not the be all and end all.
"It is more competitive on the high street today than previously," Mr Gerrard continued. "High street banks are becoming more in-line with online."
With borrowing continuing to rise in tandem with wider-than-ever access to the Internet, the national level of personal debt is set to rise further, having passed the £1 trillion mark last year.
Nowadays, however, there will be more competitive interest rates on the high street than previously because of online lending's recent boom.To read more loans news, click here.
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