Date issued: 22 May 2007
NATIONWIDE CELEBRATES TEN YEARS OF INTERNET BANKING
Research shows over a third of British adults use internet banking
Nationwide Building Society is celebrating the tenth anniversary of the launch of the UK’s first internet banking service on 27 May 1997. Over the last decade, internet banking has developed into a sophisticated and immensely popular facility. New research* conducted by the Society shows that over a third (37%) of adults now use internet banking.
In 1997 just over 13,000 customers registered for Nationwide’s internet bank. Over the last decade this figure has steadily increased to over three million people and this growth is set to continue.** Those who registered ten years ago have seen the internet bank develop into a system that allows users to manage all of their personal finance needs and even vote at the Society’s forthcoming AGM. Over half (53%) of internet bank users bank online because they believe it is convenient. Half (50%) of users also say internet banking is easy to use, with a quarter giving speed as their reason for banking online. One in ten (11%) say they use internet banking because they can’t always get to a branch, with just 4% saying they access internet banks because it reduces their paperwork.
As internet banking has developed across the industry, more and more people have decided to manage their finances online. Now, just over one in ten adults (11%) have used internet banking for more than six years and a further 20% of people have been logging on for 4-6 years.
Two thirds (66%) of internet bankers log on at least once a week. 9% of men say they check their internet bank every day compared with 6% of women. Over two-thirds (70%) of all internet bank users manage at least half of their personal finances on the internet with 12% of internet bank users managing all of their banking needs via the facility.
Nearly all internet bankers (93%) manage their current account online with two thirds (66%) managing their savings accounts online. Half of users (50%) manage their credit cards online whilst less than a fifth of users access their personal loans (14%) and mortgages (17%) via internet banks. Half of users (49%) log onto their internet banks to manage these accounts after 6pm in the evening with just under a third (31%) logging on during the day (8am – 6pm).
For those that do not use internet banking, one in four (23%) state it’s because they prefer to deal with people face to face or over the telephone.
People also have different views on the safety of internet banking. Only a third (31%) of people who don’t use internet banking think it is safe whereas over four fifths (86%) of internet bank users think it is safe.
Commenting on the anniversary, Mik Hodsdon, divisional director at Nationwide, said: “This research shows that internet banking has become increasingly popular. Customers have the convenience of banking from the comfort of their own home, or indeed wherever they are in the world, together with many additional benefits such as discounts and paperless statements. Internet banking has continued to be developed and enhanced over the last ten years and there is no doubt that it will attract more and more users.
“When we launched our internet bank in May 1997, we knew it would be a success with our customers. Since the launch, we have developed a number of systems which make it easier for our customers to do business with us. Today they can complete their mortgage application online, transfer funds from one account to another and they can even replace their paper statements by receiving statements online. It will be interesting to see the advances that technology will bring over the next ten years.”
For further information:
Rachel Shephard, Rachel.firstname.lastname@example.org, Tel: 01793 657225
Steve Blore, Steve.email@example.com, Tel: 01793 655199
Notes to editors:
* Research compiled by Ipsos MORI between 14-15 May 2007 via a telephone omnibus. The Ipsos MORI telephone omnibus is run weekly and consists of a representative sample of around 1,000 GB adults, aged 18+.
** Data collated by Nationwide Building Society. There were 13,192 people registered for Nationwide’s internet bank in 1997. There are now 3,036,000 registered for Nationwide’s internet bank.
Cancelling Paper Statements
If all Nationwide’s customers cancelled their paper statements, 40 million sheets of paper would be saved in just one year.
Since the initiative was launched in June 2005, over 330,000 Nationwide customers have opted to cancel their statements.
In the last few years, Nationwide has introduced measures that reduce the levels of paper used by the Society and its customers including electronic application forms and online marketing literature. Nationwide’s Internet Banking site now allows customers to view up to 27 months’ of statements online, eliminating the need for paper statements. These images look exactly the same as the paper version and can be stored electronically, or printed if a duplicate copy is required.
Nationwide’s AGM will take place on Thursday 19 July at 11am at the International Conference Centre in Birmingham.
All eligible voting members should receive their AGM mailing pack no later than Monday 26 June.
Disability Sport Events do fantastic work encouraging and enabling disabled people to participate in sport and so we are going to donate 10p per vote in an effort to raise up to £100,000 for them.