Sainsbury's bank loans sees online applications jump

More people than ever are taking out insurance and loans online according to data from Sainsbury's Bank loans.

The figures show that the number of financial services sold over the internet rose by over 200 per cent last year and predictions are that this number will continue to rise.

According to similar research from NOP World Financial a further 27 per cent increase can be expected in 2005 meaning that a total of 4.3 million adults will purchase a financial service online this year.

The increase is a result of two main factors. Technological improvements, which have increased broadband availability and made online transactions more secure; and new legislation.

Laws that came into force in December 2004 now mean that people who take out financial services online no longer have to send signed paper copies of the agreement.