Growth in Internet banking is outpacing all other retail delivery channels and is rising at an annual rate of 27%, according to a US study by TowerGroup.
The research has also found that overall, consumers are now interacting with their bank more than in previous years.
TowerGroup predicts the growth in overall US delivery channel transactions wili increase at an average rate of 10% between 2006 to 2010 across all channels - branch, ATM, telephone and Internet.
But TowerGroup says the Internet represents the future of bank delivery as ATMs and bank branches are now showing signs of flattening transaction volume.
"Customer preferences are evolving from waiting in line for the teller, to going online for more and more of their needs," says Jerry Silva, research director, retail banking delivery channels.
Silva says increasing use of mobile phones in the US has resulted a rise in telephone banking, but he warns that unless banks improve the technological capabilities and complexity of call centres, much of this growth will not convert into business opportunities.
TowerGroup says the real strength of bank delivery will occur with increased collaboration between channels, which will allow the banks to increase brand awareness and market and sell products.