FOR IMMEDIATE RELEASE
September 8, 2011
ABA Media Contact: Carol Kaplan       
(202) 663-5471
E-mail: ckaplan@aba.com
Follow us on Twitter @ABABankingNews

ABA SURVEY: POPULARITY OF ONLINE BANKING EXPLODES
Bank customers 55+ now prefer online banking over branches

WASHINGTON — A new survey by the American Bankers Association shows that for the first time, older Americans prefer to do their banking online compared to any other method.  The survey of more than 2,000 U.S. adults, conducted August 12-14, 2011 by Ipsos Public Affairs, an independent market research firm, revealed that the popularity of online banking among customers 55 and up has surged since last year.  Fifty-seven percent of bank customers 55 and up say they prefer banking online compared to 20 percent in 2010. 

Overall, bank customers now prefer online banking more than all other methods combined.  This year, 62 percent of U.S. adults polled named online banking as their preferred banking method compared to just 36 percent last year.  This is the first year the ABA survey was conducted online.  All previous surveys were conducted by telephone.  ABA has conducted the survey annually since 1998.  The margin of error is +/- 2.2 percent. 

The preferences for all other banking methods experienced declines.  Customers named the following banking methods as preferred as follows (see trend chart below):

• 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 first became the most preferred banking method in 2009 with 25 percent of customers naming it as their favorite.  This marks the first time, however, that adults 55 and up also named it their preferred banking method.  Previously, visiting a branch was the most popular method, followed by ATMs. 

"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.

See preferred banking method ages 18-34.
See preferred banking method ages 35-54.
See preferred banking method ages 55+.

About the Survey

These are some of the findings of an Ipsos poll conducted August 12-14, 2011.  For the survey, a national sample of 2,011 adults aged 18 and older from Ipsos' U.S. online panel were interviewed online.  Weighting was employed to balance demographics and ensure that the sample's composition reflects that of the universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/- 2.2 percentage points 19 times out of 20 of what the results would have been if the entire population of adults aged 18 and older in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

            The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its two million employees.   Learn more at aba.com.

# # #