Twenty years after Nationwide launched the UK’s first internet bank, new research shows that most Brits say online banking has made them more financially aware.

However, despite the mass adoption of digital banking, one in 10 people have not yet made the switch to go online with their finances.

The Nationwide Current Account survey of 2,000 adults revealed that more than two thirds (69 per cent) believe that using internet banking allows them to keep on top of their finances, with four in 10 (40 per cent) saying they are better at budgeting due to being able to bank at home or on the move.

As a result, nearly a quarter (22 per cent) are less in debt through constantly eyeing their finances online, and in excess of a third (37 per cent) have avoided dipping into their overdrafts as a result.

The internet bank has also proved to be an effective timesaver, with more than a quarter of Brits (28 per cent) declaring they save at least an hour a week versus queueing up at an ATM or visiting a branch to carry out straightforward services, such as making a payment or checking balances.

James Smith, director of mobile and digital at Nationwide, said: “Nationwide was the first organisation to bring internet banking to British consumers and, as we celebrate the 20th anniversary of the launch of our internet bank, our latest research highlights how innovation and financial management go hand in hand.

“People are using the ability to log on anytime, anywhere to try and ensure they are staying well in control of their finances and attempting to avoid any unnecessary debt – this is further demonstrated by the near three quarter increase in the number of logins to our digital services.”

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