For the first time ever, the number of internet based banking customers now tops the number who use telephone banking.  It has been reported that there are 17 million live internet banking customers, against “only” 16 million who use telephone banking. 

It seems that the biggest change has come from the over 55s group, who have slowly but surely taken to internet banking, as the group also show the largest increase in internet literacy of late.  It seems that a mixture of robot like telephone banking systems, and easier and easier access to the internet have pushed many towards online banking.  What does this mean for the banking industry?

While it is good news for the financial industry from a costs point of view, with internet costs very much lower than those for the telephone system, it does open the industry up a little more to online fraud.  Over the next few years we should see a mixture of greater online security, and a number of advertisements detailing how to spot these cons and how to ensure your user details and savings are safe.  This in itself may be a major battle for the financial industry!

This move towards online banking just serves to show how advanced the UK market has become, and cemented our position as on of the most internet literate countries in the world - a position which seems sure to get stronger and stronger. 

Will mobile banking ever be as successful as internet banking? Time will tell, but there will need to be a massive increase in the quality of mobile internet connectivity, and quicker data transfer speeds - which both seem some way off at the moment.