APACS reveals five-year snapshot of online banking and internet shopping

APACS, the UK payments association, has today (24 August 2007) released telephone, internet banking and e-commerce figures for 2006, which reveal that in the past five years the greatest proportion of new internet banking users are in the over-55 age group.

The five-year growth statistics for online banking show that the number of adults in the UK using online banking has increased by 174 per cent from 6.2 million in 2001 to 17.0 million last year. This includes a 350 per cent increase in usage amongst the over 55s.

In contrast, the growth in telephone banking has been less pronounced in recent years, and in December last year APACS announced that for the first time the number of people using online banking exceeded those using telephone banking.

	2006	2001	Change
People using online banking	17.0 m	6.2 m	+ 174%
People banking online by age group
16-24	1.8 m	0.8 m	+ 125%
25-34	4.1 m	2.1 m	+ 95%
35-44	4.2 m	1.4 m	+ 200%
45-54	3.1 m	1.1 m	+ 182%
55-64	2.1 m	0.4 m	+ 425%
65+	1.5 m	0.4 m	+ 275%
People using telephone banking	15.7 m	11.5 m	+ 37%
People shopping online	28.3 m	11.0 m	+ 157%
Purchases per online shopper	24.0	8.4	+ 186%

 

Sandra Quinn, director of communications at APACS, said:
“Our research shows that more and more people are turning to the internet rather than the phone to manage their finances. While younger people continue to make up the majority of online banking users, the greatest proportion of new internet bankers are the over 55s. As a group they have come to embrace the ease and efficiency that online banking offers.”

Similarly, the popularity of online shopping continues to grow. According to the 2006 data, the number of adults shopping online has more than doubled in the last five years, from 11 million in 2001 to over 28 million last year - an increase of 157 per cent. The most popular sectors in terms of the number of people buying online in 2001 were books, CDs, travel and clothes, and these remain the most popular sectors in 2006. Unlike on the high street where the debit card reigns, the credit card is the most popular online payment method, with 252 million transactions last year, an increase of 29 per cent on the previous year. The preference for using this type of card for online shopping is probably because of the increased protection credit cards provide.

Sandra Quinn said:
“The internet has become part of our everyday lives and we increasingly rely on it to manage our finances, pay our bills and buy our weekly supermarket shopping. While confidence is growing in internet security, everyone needs to do some basic things to make sure they stay safe online.”

“By following simple tips such as making sure your computer has up-to-date anti-virus software and a personal firewall installed, you can minimise your chances of being a victim of online fraud. Similarly, a good way to help keep your card safe from being used fraudulently on the internet is to sign up for Verified by Visa and MasterCard SecureCode – you simply register a private password with your card company and use it when you shop online at participating retailers. ”

In addition, the APACS data shows that those who use online banking typically make more purchases per year on average than non-internet bankers. Online banking customers make 29.2 purchases while non-users make 16.4 per year. Those who use both telephone and online banking make the most purchases, buying goods or services online on average 31.7 times a year.

Likewise, internet shoppers are more likely to use the full functionality of their online banking service than those who don’t shop online. For example, 65 per cent of online banking customers who also shop online use their online banking to set up standing orders, compared with 42 per cent of those who don’t shop online.

ENDS

For further information contact the APACS Information Office:
T: 0870 420 3208
E: apacs@fourcommunications.com

Notes to editors:

1. APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. In a nutshell we help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as direct debits, salary payments and online/phone transactions. We also champion the fight against banking fraud and are the people who have been working to give consumers greater card fraud protection by introducing chip and PIN. Twice a year we publish figures on banking fraud losses.

2. To help avoid online scams you should always:

· Make sure your computer has up-to-date anti-virus software and a firewall installed. Consider using anti-spyware software. You should also download from the internet the latest security updates, known as patches, for your browser and for your operating system (e.g. Windows).

· Be wary of unsolicited emails requesting personal financial information. Keep passwords and PINs safe; always be wary of unsolicited emails or calls asking you to disclose any personal details or card numbers. Your bank, building society or the police would never contact you to ask you to disclose your PIN or any of your password information.

As additional preventative measures when banking online you are also
encouraged to:

· Make sure your browser is set to the highest level of security notification and monitoring. The safety options are not always activated by default when you install your computer.
· Know who you are dealing with - always access internet banking sites by typing the bank’s address into your web browser. Never go to a website from a link in an email to enter personal details.
· Report phishing emails to reports@banksafeonline.org.uk.
· Check your bank’s website; if in doubt it is a good place to get help and guidance on how to stay safe online. Check regularly for specific scams and information and guidance on protecting your PC and yourself online.

3. To minimise the chances of becoming a victim of fraud whilst shopping online, as a cardholder you should:
– Be aware that your card details are as valuable as cash in the wrong hands, so store cards securely at all times and try not to let them out of your sight.
– Sign up to Verified by Visa or MasterCard SecureCode whenever you are given the option whilst shopping online. This involves registering a password with your card company. Signing up to this service prevents fraudsters from using stolen card details on participating sites as they will not know your password.
– Only shop on secure sites; before submitting card details ensure that the locked padlock or unbroken key symbol is showing in your browser. (The locked padlock symbol is usually found at the top of the screen if using Internet Explorer 7 or Firefox 2.) The beginning of the online retailer’s internet address will change from ‘http’ to ‘https’ when a connection is secure. In some new browsers, such as Internet Explorer 7 and Firefox 2, the address bar may also turn green to indicate that a site has an additional level of security.
– Never disclose your PIN to anyone and never send it over the internet.
– Print out your order and keep copies of the retailer's terms and conditions, returns policy, delivery conditions, postal address (not a post office box) and phone number (not a mobile number). There may be additional charges such as local taxes and postage, particularly if you are purchasing from abroad. When buying from overseas remember that it may be difficult to seek redress if problems arise, but having all this information will help card companies take up your case if difficulties arise.
– Ensure that you are fully aware of any payment commitment you are entering into, including whether you are instructing a single payment or a series of payments.
– Consider using a separate credit card specifically for online transactions.