(SINGAPORE) More Singaporeans are logging into their Internet banking accounts over the past year, even though some find it to be a chore.�

Mr Chew: At OCBC, the number of transactions per month rose 20% after 2FA was implemented

Thanks to enhanced security features, Internet banking has become a bit more laborious. Not only does a user have to key in a unique user ID and pin, but also a security code which is randomly generated by a security 'token' or sent by SMS, or produced by mobile phones with special software installed.

Known as two factor-authentification (2FA), these two separate identity checks are meant to make it more difficult for fraudsters to tap into bank accounts.

Not all users are enthusiastic about the idea, however.

'Who wants to carry a token around when I'm already carrying so many things?' says a miffed David Chen, 30, a writer. 'I do my online banking at home, but what if I want to log on at work, too?'

But banks say the numbers show customers have not been turned off by the extra step.

Instead, the volume of financial transactions conducted over the Internet has increased following the introduction of 2FA, due to increased assurance over security, banks told BT.

Comparing the three months before the implementation of 2FA and after, the number of financial transactions per month has increased by 20 per cent, says OCBC Bank's head of delivery, Patrick Chew.

The average dollar value of transactions has also increased 20 per cent, he adds.

Standard Chartered Bank's chief information officer Shee Tse Koon says the value of transactions made over the bank's website has increased by seven times over the past two years.

DBS Bank reported that the number of transactions increased by 5 per cent to 10.5 million in May this year, from 10 million two months before.

Its online user base also grew by about 20,000 customers during the same period, says the bank.

Banks attribute the uptrend in transactions to customers' renewed confidence in the security of online banking.

'2FA provides customers with an additional level of protection against online identity theft and other forms of online fraud,' says OCBC's Mr Chew.

The need for two factor-authentification arose after public confidence in online banking took a hit in recent years, following a spate of 'phishing' exploits, in which fraudsters tricked users into divulging their private information and passwords.

To address security fears, the Monetary Authority of Singapore in late 2005 gave banks until December last year to implement an added layer of security to their online portals.

Aware of the potential inconvenience posed to users, banks say they have tried to make the process as hassle-free for the consumers as possible.

'We were very mindful that our 2FA solution should be simple, convenient, and fit the lifestyles of our customers,' says Vibha Coburn, director at Citibank Online.

Most banks offer users a choice of at least two options for receiving passwords - the hardware token or via SMS.