•  Trust and security are the top concerns that stop people who use the internet from banking online, a major behavioural study* commissioned by the Keep Me Posted campaign has revealed
  • Around two thirds of people (65 per cent) that don’t bank online cite concerns over trust. This was followed by security concerns (64 per cent). Only one per cent said it was because they rarely use the internet
  • The study also revealed the most important reason for receiving a paper bank statement is to check for fraudulent or incorrect transactions (77 per cent)
  • Banking fraud is currently on the rise in the UK. Fraud losses** totalled £294 million in the first half of 2014, up from £254.5 million in the same period in 2013
  • Partners in the Keep Me Posted campaign believe that it is every consumer’s right to choose, without disadvantage, how they are contacted by banks and other service providers

Trust and security are the top concerns that stop people who use the internet from banking online, a major behavioural study commissioned by the Keep Me Posted campaign has revealed.

Around two thirds of people (65 per cent) who don’t bank online cited concerns over trust. This was followed by security concerns (64 per cent). Only one per cent said it was because they rarely use the internet.

The ‘Managing Money Online’ study conducted by London Economics also found that even those that are registered to bank online admitted that postal bills and statements are better in terms of being able to trust that the information is both genuine and accurate (25%, compared to 16% who said electronic is better) and secure (22%, compared to 15% who said electronic is better).

The survey of 2,399 consumers also revealed the most important reason for receiving a paper bank statement is to check for fraudulent or incorrect transactions. Three quarters of respondents (77%) rated this as ‘important’ or ‘very important’.

Partners in the Keep Me Posted campaign believe that it is every consumer’s right to choose, without disadvantage, how they are contacted by banks and other service providers.

Banking fraud is currently on the rise in the UK. Fraud losses** totalled £294 million in the first half of 2014, compared with £254.5 million in the same period in 2013. Within this total, online banking fraud losses rose to £29.3 million, up 71 per cent from £17.1 million in 2013.

Judith Donovan CBE, Chair of the Keep Me Posted campaign “Many banks and service providers want to encourage people to manage their accounts online and will stress convenience and speed as selling points. However, the fact remains that online fraud is increasing year-on-year with many criminals having a demonstrably greater grasp on technology than many of the institutions they are targeting. This is particularly concerning for older or vulnerable people who might not be as capable when using technology – how can these people be sure that they are not being targeted by criminals? It is important that people have a choice about how they receive information from their financial services provider so that they manage their accounts as effectively as possible.”

Aside from the dangers of criminal activity, the study found that the majority of people are able to manage their own money more effectively when using paper bills and statements. The results of the study showed that 75% of those who received a paper statement were able to correctly assess the financial health*** of their account compared to 48% who received an online statement.

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Editor’s Notes:

* Research taken from Keep Me Posted’s Behavioural economics study. Research involving 2,399 respondents carried out by YouGov and London Economics on behalf of Keep Me Posted in December 2014

** Financial Fraud Action UK, 12 September 2014 (http://www.financialfraudaction.org.uk/cms/assets/1/2014%20h1%20fraud%20figures%20-%20final.pdf)

***A healthy statement was defined to respondents as one that had a high amount of money coming in relative to the amount of money going out with evidence of good financial management such as no late payment fees, an unhealthy statement would be the opposite.

The experiment compared the responses and attitudes of two groups of people in a test scenario – one group was sent information by post and another group received the same information online.