Online banking 'no longer niche'

Over half of US households with incomes of more than $30,000 a year regularly use online banking services, a new survey from Gartner has found.

The research specialist said its poll, which found similar adoption of online banking among UK households earning more than £15,000 ($24,520), underlines that internet banking can no longer be considered a "niche channel".

Of the 3,988 consumers questioned between December 2008 and January 2009, 47 percent of those in the US and 30 percent of UK adults had used online banking in the past month.

The main reasons for not using internet-based services were a preference for another banking channel (61 percent in US and 58 percent in the UK) and concerns about security, which was an issue for 41 percent of consumers in the US and 38 per cent in the UK.

"Focusing on how the two main factors for nonuse - channel and security - linked to the key demographics of income and generations provides clues for banks working to increase online acceptance," said Gartner research director David Schehr.

The UK's Lloyds Banking Group, Royal Bank of Scotland and HSBC were recently included in comScore's top ten most popular online banking sites in Europe.