Web to be number one choice for banking in 10 years

People will do the majority of their banking online within 10 years according to analyst TowerGroup.

There are almost 600 million online banking users in the world, according to a TowerGroup report, with numbers of users forecast to grow 20 per cent each year.

This increase far outstrips predicted demand on bank branches, telephone contact centres and cash machines the analyst said.

Online banking is viewed as an important channel for financial services firms, helping to take pressure away from high street branches. However, banks are still working out how to make their online proposition interesting to customers. Ease of use, along with security and personalisation, were recently found to be among the most valued online banking features by consumers.

"Whether it's the mundane daily tasks of paying bills, or the management of long-term financial goals, banks must position their online banking channel to become the epicentre of customers' financial lives," Nicole Sturgill, research director in delivery channels service at TowerGroup, said in a statement.

"Every bank should be channelling investments and resources to make its website the financial home page for consumers."

This growth in online banking is being driven by both developing economies and a global shift among younger generations to rely more on online and mobile channels for their everyday needs, the TowerGroup research says.

It recommends banks invest in their website to ensure it can be used for all of customer's banking needs.

Analyst house Gartner found built-in security against fraudsters topped the list of features that bank customers most want to see on banking websites, with single sign-in and the ability to receive credit and account balance alerts also proving popular.

Barclays Bank recently unveiled a new design for its online banking site that offers a clearer layout and navigation, making it easier to carry out standard activities such as making, viewing or changing payments.