Young people are more likely to use an online bank than their older counterparts. A report released Tuesday by Filene Research Institute found 22% of people under 30 use an online bank as their primary banking institution, compared with 11% of people over 40.
That Gen Y consumers should favor online banks over brick-and-mortar institutions should perhaps come as no surprise; a May 2010 report from the Pew Research Center's Internet and American Life project found 95% of people under 30 use the Internet compared with 79% of all adults.
By 2020, Gen Y will make up 40% of the workforce, according to the report. “Credit unions and community banks that fail to win over young consumers are doomed," Rob Rubin, author of the report and founder and CEO of Facilitas, said in a release.
Of those who use an online bank, 68% say they have the "best combination of features and fees," and 68% say that online services best meet their needs.
"These opinions far surpass those offered by community bank customers, credit union members and big bank customers, and the strength of these opinions shows that 'personal' service really means 'suitable' service; often, that service is best given online," according to the report.