Siemens is looking to trial a new biometric ID card which would identify banking customers by electronically reading their fingerprints.

The technology, developed in Switzerland, would reduce the risk of online banking fraud, which cost UK customers more than £22 million last year.

The card is the same size as a normal bank card and is already being trialled in banks in Germany and Switzerland.

It could also be rolled out to work in cash machines and for safer online shopping.

Jonathan Heywood, of Siemens IT Solutions and Services, said: "Many people associate online banking with risk.

"This device will reduce the threat posed by online fraud, reassuring customers and banks at the same time that their transactions are valid."

The device is safe from hackers because it only reads information and does not send any.

The customer is sent a confirmation in code, which would greatly reduce fraud and phishing attacks.

Current online banking systems rely on PIN security for customers to identify themselves.

Under the new system, the customer would identify themselves through their online identification, their online banking card and their fingertips.

The user can also select a 'panic finger' to use if they are forced to log in under duress, when the bank will only pretend to carry out the transaction.