While older consumers might be slower to adapt to new technology, once they try it, they seem to like it.
That's the conclusion of a new survey by Ipsos Public Affairs, which finds a large one-year increase in the number of consumers over age 55 who express a preference for online banking. Fifty-seven percent of bank customers 55 and up say they prefer banking online compared to just 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. The annual survey was commissioned by the American Bankers Association.
This appears to be one trend favored by both the industry and consumers. Banks in recent years have seemed to discourage personal interaction with the public, since that requires employees. Online banking cuts costs for banks and consumers appear to like it as well.
Mobile banking not growing
The preferences for all other banking methods experienced declines in the 2011 survey, including banking using mobile devices. Customers named the following banking methods as preferred:
- Internet Banking – 62 percent (36 percent in 2010)
- Branches – 20 percent (25 percent in 2010)
- ATMs – 8 percent (15 percent in 2010)
- Mail – 6 percent (8 percent in 2010)
- Telephone – 3 percent (6 percent in 2010)
- Mobile (cell phone, Blackberry, PDA, I-Pad, etc.) – 1 percent (3 percent in 2010)
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.
