BRITS BANK ONLINE TO SAVE THEIR BLUSHES
(3 August 2006)

A quarter (24 per cent) of Britons are too embarrassed to talk about their finances over the phone or face to face and are increasingly turning to the Internet to manage their financial affairs, according to new research* from Lloyds TSB Internet banking. The findings reveal that more than half the population (54 per cent) now prefer to do their banking online, to avoid discussing their money matters openly.

The desire for privacy is a huge factor in the decision to bank online, with two fifths (45 per cent) citing this as a reason. Two fifths (43 per cent) also say that they’d feel more comfortable applying for a loan online rather than speaking to somebody and more than a third (38 per cent) say that they’d be more likely to apply for an overdraft or overdraft extension on the web. A further third (32 per cent) say that they’d prefer to apply for a credit card online.

While Internet banking is attractive to people who feel shy talking about money matters, nine out of ten (87 per cent) say they bank online to save time, while almost three quarters (70 per cent) think banking online makes life easier. Nearly two thirds (64 per cent) like the fact that Internet banking fits in with their busy lifestyle and over half (58 per cent) say that it puts them in control of their money.

Nine out of ten people (90 per cent) of people said that online banking takes the stress out of managing their money and a similar number (86 per cent) claimed that since they registered for Internet banking they feel more confident about their financial affairs. A massive 92 per cent said that banking online encourages them to check their bank balance more often.

Anita Hockin, head of Internet, Lloyds TSB said: “Money is one of the few subjects that many people still feel uncomfortable talking about, even with their bank. Internet banking has become increasingly popular in recent years, not just because it’s convenient, but because it gives people privacy when it comes to managing their money.

“Despite all the benefits of online banking, it’s important that people don’t end up burying their heads in the sand. Sometimes it can be worth picking up the phone or calling into a branch to talk through more complex matters especially if you have any particular worries.”

*Research conducted by Ciao online with 2,000 Internet banking users in June 2006.