New Survey from Javelin Strategy & Research and Jumio Finds Ease of Use and Security Concerns as Key Barriers to Adoption
PALO ALTO, Calif. – March 6, 2018 – Millennials lead the charge in mobile banking usage, but financial institutions must adapt their user experience for onboarding to attract and retain these customers, according to findings today released by Jumio and Javelin Strategy & Research. The exclusive research examined mobile banking adoption across generational divides.
Mobile Banking Adoption
The findings reveal that while over 75 percent of millennials, Gen Xers and Baby Boomers currently use online banking, millennials lead in mobile banking adoption* (47 percent), while Baby Boomers lag (23 percent have adopted). Across generations, peer-to-peer payments is the most popular mobile banking activity (33 percent of users). The most common mobile banking activities reported were quick transactions, including peer-to-peer payments, transferring funds between accounts and monitoring recent transactions.
The account opening, or onboarding, process is especially critical as an abandoned transaction at this stage is a negative first experience for a customer. Of those who opened bank accounts last year, 49 percent were millennials. Credit cards were the most common type of new account opened on web or mobile, with 61 percent of individuals who opened a new credit card doing so via these digital methods.
“While online banking has reached parity across age groups, mobile banking adoption is still accelerating,” said Al Pascual, SVP, Research Director and Head of Fraud & Security at Javelin Research. “To capitalize on the growing demand for mobile banking as millennials grow in spending power, financial institutions must simplify user experience and address ongoing concerns around security and fraud.”
Barriers to Mobile Banking
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 overall and 38 percent for millennials) or they could not remember their password (28 percent).
The potential cost of a poor user experience for mobile banking is high. Of those that abandoned at least one mobile activity, 31 percent responded negatively to the financial institution by sharing the experience with a family or friend, opening an account at another financial institution, filing a complaint or stopping patronage altogether.
“Though expectations for information security are critical, banks must find a way to reduce friction in account opening processes,” said Stephen Stuut, CEO at Jumio. “Millennial expectations for a simple, fast user experience will make the difference between long-term customer loyalty and churn. Jumio pairs the confidence of the world’s largest ID verification provider with a streamlined onboarding process to help businesses keep their valued customers, while reducing fraud.”
Security Fears Thrive
Among all age groups surveyed, information security and fear of fraud were the top two concerns identified. Baby Boomers responded with the highest rates of alarm, with 55 percent reporting information security concerns, while 51 percent pointed to a fear of fraud, more than any other group.
To learn more about the report, “Generational Perspectives on Technology and Banking,” please visit http://go.jumio.com/online-banking-generations-study.
For live demonstrations of the Netverify ID, Identity and Document Verification solutions, visit Jumio at booth E45 during Money 20/20 Asia in Singapore, March 13-15.
*For this study, mobile banking refers to banking activity conducted solely or primarily through a mobile device, typically through an app. Online banking activity refers to banking conducted via web browser online.
When identity matters, trust Jumio. Jumio is the creator of Netverify® which enables businesses to increase customer conversions while providing a seamless customer experience and reducing fraud. By combining the three core pillars of ID Verification, Identity Verification and Document Verification, businesses now have a complete solution that allows them to establish the real-world identity of the consumer.
Leveraging advanced technology like biometric facial recognition. machine learning, and human review, Jumio helps customers to meet regulatory compliance including KYC and AML and tie the digital identity to the physical world. Jumio has verified more than 87 million identities issued by over 200 countries from real time web and mobile transactions. Jumio’s solutions are used by leading companies in the financial services, sharing economy, higher education, retail, travel and online gaming sectors.
Based in Palo Alto, Jumio operates globally with offices in the US, Europe, and Asia Pacific and has been the recipient of numerous awards for innovation. For more information, please visit www.jumio.com.
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