But despite research confirming that online banking is now a part of everyday life for many internet users in Hong Kong, the prospect of internet-only banking looks distant because some customers still expect banking services to be delivered in the traditional way.

HSBC, which has more than 60 per cent of Hong Kong's internet banking users, does not see e-banking as a stand-alone channel, but as complementary to its other customer points of contact.

'Internet banking has been here for almost five years. And while the growth of monthly registrations of new users remains constant, the transaction volumes continue to increase and types of transactions have become diversified - a good indication of customers' growing maturity in online banking adoption,' said Peter Brooks, head of internet and self service banking, personal financial services at HSBC.

'We believe that these are due to our service's continued improvement. We constantly add new online features and functions to make online banking a user-friendly alternative for all our customers.'

Standard Chartered Bank also sees online banking as complementary to its physical branches, phone banking and ATM operations in providing banking services around the clock.

A Standard Chartered Bank spokeswoman said: 'As it [e-banking] is a servicing channel, the strategy has been very much customer driven. Our enhancements of late are mostly focused on customer protection, although that has been a tough call because heavier security may not always mean added convenience.'

It can be argued that most customers still demand the reassurance of one-to-one personal support.

Mr Brooks said customers would always want to visit a branch to speak to a customer service manager for financial advice, wealth management planning and large commitments such as life insurance or mortgages.

With security concerns on the rise, bank clients are increasingly wary of their personal information being misused.

A report by ACNielsen this month found that security fears are discouraging people from conducting banking transactions online and banks are under pressure to provide a safe online environment if they want to move more customer interactions online for greater efficiency.

The Standard Chartered spokeswoman said: 'Banks have been further enhancing customer protection for online banking services and have been stepping up customer education on internet security.'

In light of fraudulent activities - such as, phishing, key-logging and remote hacking - online banking experts are constantly on alert for tightened security.

According to the Hong Kong Monetary Authority's (HKMA) findings, there were nine suspected fraudulent website alerts in the past six months. Some were highly publicised incidents, which did little to help improve consumer confidence in online banking.

With the endorsement of the HKMA, banks are strengthening security by implementing two-factor authentication systems. HSBC was the first to take the leap, employing a system that required users to input a key sent to them through a keychain-sized digital device.

Mr Brooks said: 'Providing a secure environment for our customers to transact online is our No1 priority. Customers are required to enter the security code for a two-factor authentication at log-on as well as for selected transactions. This provides maximum protection to our customers from the moment they log on to our internet banking site. This approach protects customers' banking transactions, their online identity and personal banking details.'

Despite a few glitches in the system, e-banking is being taken to the masses and banks are looking to prepare themselves for the electronic marketplace of the future by strengthening their core internet banking products.

HSBC has expanded its online banking portfolio. It is looking at its recently launched online insurance servicing centre as another key revenue generator.

'The online insurance servicing centre allows customers to do a number of things in the convenience of their homes or offices: view and change their policy details, upgrade their insurance plans and make claims,' Mr Brooks said.

Other value-added services in HSBC's e-banking portfolio include around-the-clock buying and selling of foreign currencies, and the new Junior Pack website, which lets children of HSBC Premier customers view their account balances.

While it is difficult to predict the shape of banking 10 years down the road, observers agree banks will continue to use technology to achieve greater efficiencies, integrate customer care with service delivery, and find non-traditional ways and means to bring different banking products to the market.

One bank that appears to be on the right path is Standard Chartered. The spokeswoman said: 'We have recently acquired Korea First Bank and through that acquisition I think we can get a snapshot of the future of banking in Asia.'