Online Banking Preferred By Younger Generation

    August 23, 2007

Banking at a branch still ranks first overall among consumer’s usage, but younger customers are continuing to do their banking online, according to a survey from the American Bankers Association.

When consumers where asked what banking method they used most often, 36 percent said branches, followed by 23 percent who bank online, 21 percent use an ATM, 5 percent bank over the phone and 8 percent by mail.

Generational differences had played a strong role on how respondents answered. Banking at a local branch was the preferred method by close to half of those over 55, but just 25 percent of those under 34 said they use branches most often. Younger customers ranked branches behind online banking (30%). Older customers said the opposite with 47 percent favoring branches, 17 percent preferred ATMs and only 13 percent selected online banking.

"We are continuing to find that while our younger consumers feel comfortable banking from their laptops, traditional services are still preferred by many," said Edward L. Yingling, ABA president and CEO.

"This is why banks are trying to offer a variety of banking options in order to meet all of their customers’ needs."