'There Is Still A Stigma Around Online Banking'

A stigma remains around online banking, which could deter current account holders from managing their finances on the web.

A company, which helps customers secure their PCs and protect their data assets, claims that consumers are worried about online banking being insecure and making them vulnerable to fraud.

According to the firm's recent Financial Services: Technology and the Internet - UK report a significant amount of people still have concerns about online banking despite the sector's huge expansion.

The report said that providers are likely to face significant challenges in convincing people of the benefits of these newer forms of technology.

However, researchers found that despite the reservations 90 per cent of those with financial products such as current accounts use the internet for some banking activities.

This equates to around 34 million people using internet for banking activities, with convenience highlighted as the main attraction for consumers.

The director of malware research at the company said that the huge uptake in online banking is underwritten by the currently perennial questions 'should I bank online?' and 'do you bank online?'

According to the expert, the "simple answer to these questions is 'yes'", because doing so will make consumers' everyday lives easier.

"The main point is that you should take every step to stay secure when you use them," he advised.

"There is already a considerable amount being done to educate consumers around security, but there's always more that can be done to ensure trust continues to grow."

Banks should offer consumers subsidised anti-malware products, as well as technology to secure the actual communication between the end user when they are banking online.

Dangers are being posed by new online fraud techniques, such as phishing and smishing, which allow criminals to access consumers' passwords and personal details.

Worryingly, nearly 40 per cent of adults admit that at least one other person knows their passwords, ranging from children, colleagues and friends.

If you would like to know more about online banking why not ask AnswerBank Business and Finance.