News

Younger consumers prefer online banking, ATM

August 30, 2006

WASHINGTON - According to survey results released by the American Bankers Association Aug. 30, younger consumers prefer to bank online or at the ATM over the branch. Although branch banking still ranks first overall among U.S. consumers, generational differences play a role in how consumers interact with their financial institutions.

When survey respondents were asked what banking method they use most often, 32 percent said the branch, 26 percent said online, 26 percent said the ATM; 5 percent said the telephone, and 5 percent said they prefer the mail. But when responses were broken down by age, according the ABA, striking differences emerged.

Thirty-five percent of the survey's respondents between the ages of 18 and 34 said they prefer to use the online channel while 33 percent said they prefer the ATM. Respondents between the ages of 35 and 54 ranked branch banking, 32 percent, and online banking, 29 percent, as their top choices, with 27 percent saying they preferred the ATM. And respondents who fell into the 55 and over category said they strongly prefer the branch, 47 percent. ATM use came in second among that group, 20 percent; only 13 percent said they prefer online banking.

Employment status plays a minor role in banking preferences, according to the survey, with 35 percent of full-time employees preferring the online channel to 29 percent of those who are employed part-time. Twenty-six percent of full-time respondents prefer the ATM to 30 percent of those who are employed part-time.

"Sometimes busy families have less time to head down to the local branch when balancing the kids and the commute," said Edward L. Yingling, ABA's president and chief executive. "Although younger customers are more likely to bank on their laptop rather than at a teller window, traditional services still remain popular with many."

The telephone survey was conducted between July 10 and July 12 and included 1,000 consumers. Ipsos-Reid performed the survey.