Millennials, Gen Xers, and Baby Boomers spoke out about their online and mobile banking experiences. Here’s what we heard.
40% of Americans have not stepped foot through the doors of a bank in the last six months. Instead, online banking is has gained serious momentum as the preferred method of banking. To learn more about the relationship between customers and online banking, we worked with Javelin Research to survey 2,000 U.S.-based banking customers. Specifically, the study explored the mobile account opening process and possible sources of friction or abandonment–and how perceptions differ among generations.
At the highest level of the study, we found that demand for online banking (which includes banking with a desktop computer or mobile device) is not isolated to just younger generations. In fact, the number of baby boomers and millennials using online banking is almost equal (77% versus 76%). However, millennials disproportionately favor mobile banking (using a bank’s phone app) over traditional forms of banking. According to the survey, monthly use of mobile banking among millennials tends to be almost double that of baby boomers (62% versus 34%).
Fear of Fraud Runs High
Trust in online and mobile banking seems to be a prevalent issue for all customers. Millennials in particular have concerns about the ease of use and hidden fees that could be associated with banking online. Distrust in the security of online banking was another cause for customer concern. This sentiment was shared across all generations, with respondents citing a “fear of fraud,” when banking with their phone or computer.
Customers Trust Biometrics
Banks are smart to take strides to incorporate features that make mobile banking customers feel secure. In particular, our study found that customers consider biometrics to be the most secure and effective way to keep their accounts safe. Therefore, security measures such as facial recognition may prove beneficial at lowering customer concerns about online security.
Slow Identity Verification Processes Drive Abandonment
However, security measures need to be as efficient as they are effective. Speed is important: waiting for identity verification was found to be the second-most common cause of abandonment (20%), next to general processes (such as loading time) taking too long (36%).
It is in the best interest of banks to take into consideration the needs and expectations of online and mobile banking customers. This is particularly true for millennials in the mobile arena: last year alone, 49% of new financial accounts were opened by millennials. But, the Javelin report found that the user experience for mobile banking asks too much of millennials; 43 percent have abandoned mobile banking activities versus only 25 percent of Gen Xers and only 13 percent of Baby Boomers. Overall, the highest source of complaint across generations of mobile banking users was that the process took too long (36 percent) or they could not remember their password (28 percent).
Given the rise of mobile and online banking across generations of consumers, Jumio’s 2017 Banking Across Generations report lends relevant, actionable insights into ways to boost customer trust and remove friction. Get your copy of the report here.