A major new survey looking into the future of Ireland’s personal wealth has found that two-thirds (65%) of people with access to the internet do not use online banking.  Coupled with the fact that less than half (43%) have access to the internet on a daily basis, online banking is used by as little as 14% of adults in Ireland.

These facts arise from an independent survey carried out by Amárach Consulting on behalf of Halifax.  Technology in Banking is the second part in a pioneering series of studies called Financial Futures that looks into the changing landscape of personal banking in Ireland*.

These results underline the continued importance of providing consumers with a range of options when performing banking transactions and answering personal finance queries, including bank branches and customer service telephone facilities. 

Online banking has an important part to play, particularly with the younger generation where take-up is higher (40% of 25-34 year-olds who have internet access use online banking), and this survey will monitor this growing importance.

The availability of broadband is seen as critical to the development of online banking.  According to the OECD**, Ireland currently has relatively low broadband penetration – 12.5 per 100 inhabitants; against the OECD average of 16.9, the UK at 21.6 and Denmark (the highest) at 31.9 per 100 inhabitants.  However, this is changing fast with OECD citing Ireland as having the fifth fastest growth in broadband penetration in the World.

Commenting on the survey, James Moore, Head of E-Commerce at Halifax, said: “As the Financial Futures survey builds year on year, we are likely to see the use of online banking grow given the young profile of internet users and the continued roll-out of broadband.  In our own experience most of our current account customers open their account at one of our branches, but then about a third are using our online service to manage their account.  It’s all about giving the customer choice in how they deal with us.  We are growing our branch network and investing in telephone and online banking facilities that provide excellent service to customers.”

Other Interesting Facts from Financial Futures

• The highest penetration of online banking users is in the 35-44 age bracket at 44% of people who have internet access.

• The majority of online banking users (62%) use it either once a week or 2-3 times a month.

• 47% of people bank online to save time, 42% enjoy the convenience and 30% because it is hassle free.

• Most common transactions online are the more routine transactions – check balance (78%), pay bills (58%), pay credit card (45%) and transfer money (38%).

• Only 11% of people think that online banking will replace bank branches.