These Are the 5 Biggest Discrepancies With How People Bank by Generation
Written by
Sarah Sharkey
Edited by
Amber Barkley
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Most banks offer a variety of ways for customers to tackle money management tasks. Although there are several ways to handle banking, the American Bankers Association’s 2024 Preferred Banking Methods survey found that different generations have unique preferences for their banking.
Explore some key highlights from the survey to learn about preferred banking methods.
Gen Zers and Millennials Overwhelmingly Prefer Mobile Options
Of the millennials surveyed, 68% of them expressed a preference for mobile banking. With that, millennials have a slightly stronger preference than even Gen Zers, of which 64% of those surveyed reported mobile banking as a preference.
Although mobile banking is most popular among the younger generations, over half of Gen Xers surveyed reported mobile banking as a preference. Even 35% of baby boomers preferred mobile banking, making it the second-most popular option among that age group.
Baby Boomers Appreciate Online Banking
Of baby boomers surveyed, 41% reported a preference for online banking, which made it the most popular option among this generation.
Within the other three generations surveyed, each reported online banking as the second-most popular option of the bunch, behind mobile banking.
Many Baby Boomers Appreciate Physical Branches
Perhaps not surprisingly, the boomers surveyed reported the highest preference for physical branches. Thirteen percent of surveyed baby boomers preferred to conduct banking tasks at a physical branch.
In contrast, only 4% of Gen Zers preferred physical branches, 4% of millennials preferred physical branches, and 8% of Gen Xers preferred physical branches.
Some Gen Zers Still Appreciate Snail Mail
Surprisingly, 4% of Gen Z respondents claimed to appreciate physical mail as a way to conduct banking business.
Although 4% is low, it’s four times more than the percentage reported by millennials, Gen Xers or baby boomers, with each generation reporting a 1% preference for snail mail.
Almost Everyone Avoids a Phone Call
In each generation, 5% or less of those surveyed preferred to bank over the phone.
Of the baby boomers and Gen Zers surveyed, 5% preferred handling banking tasks over the phone. That’s slightly higher than millennials, with 4% reporting a phone preference, and higher than Gen Xers, with 3% reporting a phone preference.
Bonus! Everyone Is Happy With Tech Improvements
Although different generations may be more or less likely to use online or mobile banking, an overwhelming majority appreciate the tech improvements their bank is making. In fact, 83% of those surveyed reported that tech improvements are making it easier to access financial services.
Plus, 96% of those surveyed reported a good, very good or excellent overall level of experience with their bank’s online platform and mobile apps.
How Banking Preferences Affect Your Banking Choices
If you are in the market for a new banking experience, it’s helpful to get clear on how you like to bank before deciding on a new financial institution. Different banks excel at different methods of banking.
For example, some banks offer a robust network of physical branches to handle banking tasks. Other banks don’t offer any branches and focus on creating a top-tier online experience.
Taking the time to decide what methods of banking matter to you most can help you find a bank that best suits your needs.
Takeaway
Almost everyone has to tackle banking tasks. Overwhelmingly, survey respondents preferred to handle banking tasks online or via their financial institution’s mobile app. Physical mail services were the least popular option, with just 1% overall reporting this as a preference.
When finding a new bank, take the time to explore their service options. Seek out a bank offering the features you prefer, like physical branches or a top-notch mobile app.
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