US banks ought to focus their efforts into expanding their presence across the online channel in order to gain more ground among the internet savvy and young consumers, a recent report has unveiled.

According to the study carried out by research company Mercator Advisory Group, online banking has continued to gain adoption in the US over the past decade and will eventually outrank branch location in the list of decision criteria when a consumer chooses a bank. The change has been triggered by heavy investments made by banks in the online services offered to customers over the past ten years.

However, financial institutions still need to focus on developing new strategies that promote their online banking capabilities. The research points out that mobile banking services are an essential ingredient that could drive the growth in online banking adoption, since they broaden access, increases usage and provide a platform for innovative products and services in the future.

In addition to offering mobile banking, banks also need to expand their EBPP (Electronic bill presentment and payment) capabilities with new e-billing services, provide easy to use personal financial management solutions and add consumer cheque image capture to their functionalities, the same report highlights.