More consumers prefer online banking, ABA survey shows.

• Position: Brief article

FOR THE SECOND YEAR IN A ROW, most bank customers (36 percent) prefer to do their banking online compared to any other method, according to a new ABA survey. Last year, 25 percent of customers favored online banking. The annual survey of more than 1,000 consumers was conducted for ABA by Ipsos-Public Affairs, an independent market research firm, on Aug. 14-15, 2010.

"Clearly, online banking has fully penetrated the market," says Nessa Feddis, ABA vice president, senior counsel and retail banking expert. "Online banking is the future of banking as more Generation Y-ers enter the marketplace. This means the industry will need to continue investing in technology that supports online banking because consumers see it as quick, convenient, accurate and safe."

Survey results showed that the popularity of online banking was not exclusive to the youngest consumers: It was the preferred banking method for all bank customers under the age of 55. Consumers over 55 still prefer to visit their local branch (33 percent). Online banking for this age group...