Online Banking is Booming

Online banking is booming with 68% saying they conducted the majority of their banking on the net last year compared to just 18% in 2005, new research from Lloyds TSB Internet banking reveals.

Meanwhile, over half of those surveyed (57%) say they've used Internet banking more often this year than last year with just 11% stating that they never manage their money online.

The real surprise however is the 70% of over 50s who now claim that Internet banking is their preferred method of money management. Conversely, younger people aged between 18 and 25 are the least likely to manage their money on the web - 36% preferring to use their telephone or to go into their local branch.

The main reason respondents gave for banking online, cited by 54%, is that the service is available 24 hours a day, seven days a week. 21% like the convenience of being able to manage their money wherever they are.

Generally speaking, Internet banking users are clued up about the things they can do online, including checking their balance, paying their bills, searching their statements and transferring money between accounts. However, a quarter were unaware they could set up and cancel direct debits and standing orders online.

Of the one in ten who don't currently bank online, the main reason given was that they don't see the need and are happy with the way they bank now (43%).