September 8, 2001/Washington, D.C.:  A new survey by the American Bankers Association has recorded a dramatic shift in the preference for Internet Banking over all other delivery channels.  But it may depend upon who, or how, you ask.

According to the new survey, for the first time a majority of adults age 55 and up prefer to do their banking online over any other method, 57% compared to 20% a year earlier.

Among all adults, 62% this year prefer Internet Banking compared to just 36% last year.

While the continued shift towards Internet Banking as a preferred delivery channel has been evident for several years, 2011's change to the trend line was unusually steep.  While the ABA has not offered any official explanation for the jump in preferences, this year’s survey was the first time the data was collected on-line.  All previous surveys were conducted by telephone.  Responses could be biased as they are based solely on Internet users and do not include those who infrequently respond to Internet or email survey requests.

ABA has conducted the channel survey annually since 1998.  The survey of more than 2,000 U.S. adults, conducted August 12-14, 2011 by Ipsos Public Affairs, an independent market research firm.  The margin of error was +/- 2.2 percent.

Other highlights of the 2011 survey include:

• Internet Banking (laptop or PC)  – 62%  (36% in 2010)

• Branches – 20%  (25% in 2010)

• ATMs – 8%  (15% in 2010)

• Mail – 6%  (8% in 2010)

• Telephone - 3%  (6% in 2010)

• Mobile (cell phone, Blackberry, PDA, I-Pad, etc.) – 1%  (3% in 2010)

“These survey results hammer home the point that retail banking has changed for good,” said Nessa Feddis, ABA senior counsel and retail banking expert.  “They tell us for the first time that customers of all age groups prefer the speed and convenience of conducting their banking transactions on the Internet to visiting their local branch or ATM. They also tell us that customers trust the accuracy and security of online banking,” she added.  

“Online banking may be the most preferred method of banking but banks are still committed to providing multiple choices to serve the needs of all customers.  Bank customers will continue to have the choice to use branches, ATMS, telephone, mobile devices or the Internet to conduct their transactions – whichever they find most convenient for them,” Feddis said.

Source: American Bankers Association