Online banking bullish despite recent scares

Share this article:

Increasing numbers of Americans are turning to online banking, a new study shows. Despite a spate of recent high profile security problems transactions on the internet look certain to grow, said market research firm Ipsos-Insight.

The number of Americans turning to banking on the internet is up 17 percent in 2004 compared to 2002, highlighted the survey of 1,000 American adults.

"Customers weigh up risk," said Sandra Quinn, director of communications at banking body Apacs. "Most realise that banking online is safe and that the convenience of banking at midnight is significant."

The survey showed that the most popular form of online banking is bill payment. Nearly half of Americans all online bankers using the pay bills either through their own banks or directly to the bill recipients.

The news comes just weeks after two security slips left industry watchers wondering whether the sector would continue its growth. Both internet bank Cahoot in the UK and Morgan Stanley revealed website flaws that allowed external users to views other people's account details.

A rise in internet scams has also threatened customer belief in the security of online banking. "It's difficult to say whether increase in fraud and these other factors has yet had an impact," said Quinn. "But even in the UK 14.2 million people are banking online now as opposed to 7.9 million two years ago.

www.apacs.org.uk

Share this article:
close

Next Article in News

Sign up to our newsletters

More in News

Brazilian president signs internet 'Bill of Rights' into law

Brazilian president signs internet 'Bill of Rights' into ...

President Dilma Rousseff signed the legislation on Wednesday at the NetMundial conference in Sao Paulo.

Android trojan sends premium SMS messages, targets U.S. users for first time

Android trojan sends premium SMS messages, targets U.S. ...

An SMS trojan for Android, known as FakeInst, has been observed sending premium SMS messages to users all over the world, including, for the first time, the United States.

Report: DDoS up in Q4 2013, vulnerability scanners leveraged to exploit sites

Report: DDoS up in Q4 2013, vulnerability scanners ...

Researchers observed 346 DDoS attacks in the final quarter of 2013 and attackers used Vega and Skipfish vulnerability scanners to exploit web flaws at financial companies.