Internet Banking in the UK

Internet banking is catching on throughout the world. More and more customers are coming to see its many benefits. While Internet banking began as a niche market it has grown into a very valuable and well-used financial tool for regular consumers and those of different socioeconomic statuses. 

Internet banking is catching on throughout the world. More and more customers are coming to see its many benefits. While Internet banking began as a niche market it has grown into a very valuable and well-used financial tool for regular consumers and those of different socioeconomic statuses. 

Internet banking in the UK is booming in the same way that it is booming in the U.S. According to a survey done in 2009 by the Gartner Group, an estimated 30 to 40 percent of the population in the UK uses Internet banking. This number is expected to continue to grow in the years to come.

What the survey also discovered is that the use of Internet banking is not the same amongst all income earners. Over half of all consumers in the UK who use Internet banking are those with higher incomes who described themselves as being affluent. On the other hand approximately 17 percent of respondents from lower income households were found to use Internet banking (which is also sometimes referred to as online banking or virtual banking).

The number one reason that UK residents who do not utilize Internet banking are hesitant to do so is out of fears that they harbor concerning safety and security. The second reason is that they are simply used to other banking methods and like to stick with the tried and the true.

One fact that cannot be denied is that the overall use of Internet banking in the UK has increased over the past several years. It is attracting more and more consumers.  Internet banking users are widening and the number of non-users is narrowing. The dynamics are shifting. While younger consumers tend to be more interested in online banking and the resources it brings with it the more mature individuals in society are also allowing themselves to learn of what it can do for them. Many people turn to Internet banking and are so pleased with it that they choose not to turn back to more conventional methods. 

Internet banking in the UK offers all of the same banking products and services that the High Street banks offer. For those unfamiliar with the term “high street banks” they are the banks that are found in the high streets of the United Kingdom (also known as the main or primary business district of the cities and towns). In the United States the term “front street banks” is used instead.
Many people look to Internet banking because it is convenient and is believed to offer better value because of the lower overhead. There is also the added benefit of being able to do all of your banking maintenance from your home any time of the day or night. This takes away the need to visit your bank’s branch.

Internet banking in the UK (which encompasses online business banking) brings with it some security concerns for consumers that the banks are doing their best to address. The claim of the banks in the UK is that the encryption procedures they use (otherwise known as coding) is such that it is almost impossible for hackers to break into accounts and steal private account details.

Internet banking in the UK offers much promise to the consumer who is looking for a simpler, faster and more convenient way to do such things as transfer money from one account to another and check their bank balances.