Brits 'embracing online banking' header image

The internet is changing the way people in the UK bank, new research has revealed.

According to a study from the British Banking Association (BBA) and EY, digital banking now accounts for transactions worth close to £1 billion every day. 

Some £6.4 billion is transferred each week via internet and mobile banking, which is up from £5.8 billion last year. 

Anthony Browne, BBA chief executive, stated: "The way we bank now has made it a lot easier for us to keep track of our finances, with far more options about how we spend our money and talk to our bank.

“Banks have, are and will continue to compete against one another to offer customers innovative technology to win your custom. It's a revolution putting more power in your hands."

According to the study, internet banking services now receive an average of seven million log-ins per day. Meanwhile banking apps are being downloaded at a rate of 15,000 each day.

Tariq Khatri, EY partner for digital financial services, said the growth of digital banking is good news for customers and could have a positive impact on the nation's economy as well. He said the UK has an opportunity to become a global leader in this field, which will help to secure its position as one of the strongest financial services markets in the world.

While the bulk of online banking activity consists of people logging on to their account through their computer or mobile device, newer technologies such as contactless cards are also becoming more popular.

Spending on these cards is expected to reach £6.1 million per week over the course of this year, compared to the £3.2 million that was recorded in 2013.

The BBA and EY stressed banks remain committed to the high street despite the rise of online services. They pointed to the fact 2,274 branches have been refurbished during the past two years as evidence of this.