Survey shows more consumers prefer online banking

Survey shows more consumers prefer online banking

Posted: Wednesday, May 18, 2011 6:01 pm

GREENFIELD – A new survey by the American Bankers Association shows that for the second year in a row, most bank customers (36 percent) prefer to do their banking online compared to any other method.     
“It tells us that more consumers prefer the speed and convenience of conducting their banking transactions on the Internet.  
It also tells us that consumers now have confidence in the accuracy and security of online banking,” said Dustin Frazier, branch manager for First State Bank of  Greenfield. 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 was the second favorite way to conduct banking transactions (20 percent).
Among all consumers, the preference for online banking was followed by visiting branches (25 percent), and using ATMs (15 percent).   The use of mobile banking (cell phones, PDAs, etc.) was preferred by three percent of consumers, primarily among 18 to 34 year olds.  The popularity of ATMs was down in all age groups.
“Online banking may now be the most preferred method of banking but we are committed to providing the best customer service to all consumers. Our bank will continue to provide the choice between branches, ATMs, telephone, cell phone, or the Internet to conduct transactions – whichever our customers find most convenient,” Frazier said. The annual survey of more than 1,000 consumers was conducted for ABA by Ipsos-Public Affairs, an independent market research firm, on August 14-15, 2010.
METHODOLOGY:  For the survey, a nationally representative sample of 1,010 randomly-selected adults aged 18 and over residing in the U.S. was interviewed by telephone via Ipsos’ U.S. Telephone Express omnibus.  With a sample of this size, the results are considered accurate within ±3.1 percentage points, 19 times out of 20, of what they would have been had the entire population of adults in the U.S. been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau.
First State Bank has 27 full-service banking locations in 22 communities throughout West, Middle and East Tennessee.  It is owned by Community First Bancshares Inc., a holding company headquartered in Union City, TN, which also operates a mortgage company, an insurance company, a specialized ag services division, an employee benefits division, investment services, a consumer finance company, and an indirect auto financing division at various locations across the state.The banking company currently has assets totaling over $1.5 billion. The banking company has offices in the communities of Davidson, Dyer, Gibson, Haywood, Henderson, Knox, Madison, Obion, Robertson, Shelby, Sumner, Tipton, and Weakley Counties in Tennessee.  Its metropolitan markets include Collierville, Gallatin, Goodlettsville, Hendersonville, Jackson, Knoxville, and Nashville.

wcp 5/17/11

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