Increase in online banking popularity

7 September 2006

Online banking is gaining in popularity in both the US and the UK, although visiting a branch is still the preferred option for many, the latest research suggests.

According to a survey carried out by UK-based Lloyds TSB, over half (54 per cent) of British banking customers prefer banking online to visiting a branch, with the desire for privacy and discretion concerning banking issues cited as the most important reason.

In the US, however, the picture is slightly different, with research from the American Bankers Association showing that only 26 per cent of customers banked online as their first choice, Associated Press reports.

Despite this being an increase on previous figures, visiting a branch was found to be still the most popular way to bank in the US, with nearly a third (32 per cent) ranking it as their preferred banking method.

The increasing use of online banking services looks set to continue, however, with the research showing that younger generations are happier with internet banking than older people.

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