A new survey from the American Bankers Association confirms what many banking industry analysts have been saying for some time.

Generation Y bank customers are much more liable to use online banking than the generation that preceded them so banks that intend to remain competitive and attract Generation Y business will need to make continued and substantial investments in both the strategies and technology that supports and improves the online banking process. The survey that was carried out last year had 25% of respondents saying that their preferred method of banking was to go online.

Over the course of only 12 months, this year’s survey found that that number had increased to 36%, a clear indication that online banking is taking off with younger customers.

It has been found that bank customers in the 55 plus age range are more liable to want to do their business in person at their local branch but even this demographic group has 20% of people who say that they prefer online banking.

People in the Generation Y demographic group grew up using computers and are considered to be very technologically capable.

It is not surprising that they prefer the convenience of doing their banking online.

As they become more sophisticated in their banking needs they will want to see more banking applications available for mobile devices and demand that banking become more personalized with improved communications.

The American Bankers Association has said that its members feel that the future of banking is in online banking.