More U.S. consumers prefer to do their banking business online, according to results of a national survey released on Monday. The survey, released by the American Bankers Association (ABA), reveals that 25 percent of bank customers prefer online banking to any other method, while 21 percent visit local branches and 17 percent use ATMs. The use of mobile banking on cell phones is preferred by only 1 percent of consumers, primarily among people aged between 18 and 34. 'This marks a watershed change,' said Nessa Feddis, the ABA senior counsel and retail banking expert. 'It tells us that for the first time, more consumers prefer the speed and convenience of conducting their banking transactions on the Internet than visiting their local branch.' The ABA represents its bank members, which are primarily banks with less than 125 million dollars in assets. Its members hold 95 percent of U.S. banking industry's 13.3 trillion dollars in assets. Online banking has become a major platform for many banks, said Sarah Radwanich, senior analyst at Chicago-based comScore, Inc. Banks are offering higher interest rates, gas points, large cash incentives for each new checking customer and services such as online personal financial management tools as incentives for people to open online accounts. The results of the latest survey also show that the popularity of online banking is not exclusive to the youngest consumers -- it is the preferred banking method for all bank customers under the age of 55. Convenience has obviously played a major role in expanding the trend in online banking, said Carol Kaplan of the American Bankers Association. People choose when and where to manage their finances, and they can keep a closer watch on their accounts with anytime online access. These services are most often free, which can save bank customers money and a trip to the ATM, offering more attractive incentives. However, a majority of consumers more than 55 years old, or 26 percent, still prefer to visit their local branch. One of the reason is that security remains a concern for them using online banking services. According to a separate survey conducted by the Chicago-based comScore, Inc. earlier this year, security management tools, such as free identity-theft services and free credit score monitoring, are high on the list of desired online service for many of these users. Experts believe that most of the banks will focus on solving these problems in the future to attract more customers doing their business online. 