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BizReport : Research archives : August 28, 2008

CheckFree: Security no longer main barrier to online banking

Security concerns among online Americans are fading and more are willing to go online to perform everyday banking and bill payment activities. In fact, three-quarters of online Americans now do so online, according to a new survey from bill payments technology provider, Checkfree.

by Helen Leggatt

checkfree%20logo.jpgWith security concerns now the number three reason (13%) for online Americans not turning to the Internet for their banking, what’s the number one reason? According to CheckFree’s survey it’s the lack of knowing what to do (15%) or, as the survey worded it, “I don’t know enough about how it works”.

What is driving consumers to go online to bank and pay bills is their concern for the environment (51%) including gas emissions as a result of driving to the bank and saving trees by using less paper. Control and time saving elements are also considered benefits by consumers (44%), in particular not having to write checks and being able to do all bill payments from one location – a computer.

Todd Lesher, CheckFree’s division president of Electronic Banking Services, is optimistic about the future of online payments. "As more consumers gain experience and become more comfortable using the Internet, their confidence in online security grows and we see an increase in the adoption of online banking and bill payment services," he said.

It would appear from the survey that banks need to look closer at educating customers about the benefits of online banking, both environmental and personal, and provide ways in which to guide them online. Having said that, some reports indicate that online bill payments may be beginning to give some banks a financial headache.

Tags: bill payments, online banking, online security

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