As bank branches continue to close, it can feel like the ability to manage your money is being limited too. However, online banking can help bridge that gap and allow you stay on top of money matters from the comfort of your own home.
While over a third of over 65s still never use mobile banking, that’s down from nearly two thirds in 2019, showing that the ease of use and education programs to help people use the services are having an effect.
A much larger number of 50-64 year olds are also using mobile banking every week, compared to five years ago (37% in 2024, up from 20% in 2019).
In fact, nearly all stats show a dramatic increase in mobile or online banking use, and it’s only going to increase: by 2032, trade association UK Finance predicts that 93% of us will be banking remotely.
But while more adults embrace what technology has to offer, jumping online to manage our money can seem like a huge hurdle to overcome.
An Age UK study highlights how a lack of IT skills is the key reason why many haven’t taken the leap into digital banking – despite wanting to – and more than a quarter of over 65s say they simply don’t trust the internet.
Nevertheless, getting to grips with online and mobile banking can help keep your money safe and secure as well as give you instant access to your finances, and it can be done in a simple and straightforward manner.
Are online and mobile banking the same?
In truth, online and mobile banking are very similar. The main difference is how you access your account.
Online banking lets you carry out transactions through your bank or building society’s website, using your PC, laptop or tablet.
Banks will have their own ways to allow you to log you into your account securely, but for online banking you’ll typically need a username, your sort code and account number to start.
Financial institutions such as Barclays and HSBC also take extra measures and will ask you to generate a random code using a card reader, which they’ll give you, to use all the features of their website.
To get the code, you just need to put your bank card into the device (sometimes called a PINsentry or secure key) and type in your PIN number.
The downside is that you’ll need to keep the card reader handy, so it’s not always practical if you’re out and about and forget to bring it.
Mobile banking is done using an app downloaded to your smartphone or tablet. Depending on your bank, mobile banking apps usually let you carry out more activities than online, for example paying in cheques, reporting a stolen card or viewing your PIN and card details.
They also have added security through biometric validation.
This means you can use your fingerprint or facial recognition to confirm your identity, so you won’t need the extra PINsentry device to get into your account.
All high-street banks and building societies offer online and mobile banking and are more than willing to help you get set up.
Or, if you’re keen to explore all your options, some banks are digital only – Money Saving Expert has a good run down of the features of each of these. These banks do not have any physical branches, so everything is done online, with a focus on ease of use and ability to monitor your money from an app.
What are the benefits of online and mobile banking?
The greatest benefit of being able to manage your money online is convenience and having access to your account when you need it.
It allows you to transfer money between accounts, to friends and family, pay bills, and set up direct debits and standing orders – almost instantly, in some cases.
In fact, almost everything you do in-branch can be done from the comfort of home (apart from depositing cash, of course).
You’ll also be able to take quicker action to stop fraud – for instance, if you lose your card, with many banks you can ‘freeze’ it from their app instantly, meaning it can no longer be used until you ‘unfreeze’ it.
This is useful if you’re not sure if your card has just been misplaced, rather than stolen, and you can cancel it from the app if you think it’s been taken.
More than ever, older generations are embracing these benefits. A recent YouGov survey found that, currently, just under a third of 50-64 year olds bank online at least once a week, as do nearly 40% of over 65s.
Is online banking safe?
Age UK found that 29% of those aged 50-64, who would like to do more online, simply don't trust the internet - and suspicion increases as we get older. According to the Annual Fraud Report 2023, financial fraud in the UK totalled more than £1.2 billion.
However, the finance industry is getting better at reporting and dealing with financial crime. In 2022, the value of online banking fraud dropped by 28%, and the number of cases fell by 56%.
It’s not all improving though – mobile banking fraud rose by 10%, bringing £34.2m in fraud costs. This is down to the increased usage of banking apps, but shows that users need to be vigilant about not sharing their banking details or clicking any links from email or text messages on their phone or tablet.
Banks and building societies have been pushed over the years to implement more secure features on customers’ accounts, including:
- Secure web environments – banks use encryption to ensure that your personal information cannot be read.
- Multi-factor authentication – to log into your account, you may have to enter a code from a card reader or from your phone.
- Timed sessions – after a few minutes of inactivity, you’ll usually be logged out of a session automatically (and you can choose to reduce this too, for greater security).
- Payee confirmation – if you’re transferring money, some banks will check the name matches the account so you can be sure you know who you’re paying.
Which? conducted a test of the safety of online and mobile banking at many of the big financial institutions in the country, and found a variety of results when it came to ease of logging in and out, verification of information and other security measures.
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How can I bank online safely?
While your bank focuses on encryption software and technology to keep your details safe, there’s plenty you can do too, including:
- Update operating systems on your devices when they’re available. These often include security enhancements.
- Choose a unique password - try to avoid using details that can be easily found, like your pet’s name or your date of birth.
- Never share your PIN or passwords – your bank won't ever ask you for this information.
- Set-up multi-factor authentication, such as needing a code from a text message or separate device to confirm your identity. Ask a friend or family member if you need help with this.
- Remember to log out when you’ve finished your banking session, whether you’re on a computer, tablet or smartphone.
- Only download official banking apps from the App Store or Play Store (depending on your device) and make sure you check the reviews to confirm legitimacy.
- Try not to use unsecured public Wi-Fi networks to carry out private tasks like banking.
- Check your accounts regularly so you can quickly spot unusual activity.
- If you’re being asked to transfer money, always stop and think of ways it could be a scam.
- Never click links in emails, or that are sent to you in some other way. Navigate to the website in question yourself (using Google or just typing into your browser) or phone the customer service line if you’re worried.
Bank online safely and securely
If you’re keen to get online but don’t know where to start, your bank can help. Several offer free courses not just in remote banking but how to stay safe online and build up your digital skills – and you don’t always need to be a customer to take part:
You can also find online events and support at the University of the Third Age (U3A).
If you’d prefer face-to-face support, some Age UK branches provide IT training (you may be asked for a donation to take part). It’s also worth keeping an eye out for courses at your local library– these are often free, but you might need to book.
