Speed Unlocks Conversions
Online banking is has gained serious momentum as the preferred method of banking:
40% of Americans have not stepped foot through the doors of a bank in the last six months.
When it comes to account opening, design with millennials in mind.
of new online banking accounts were opened by millennials
Speed is the key to account opening conversions online.
of online banking customers abandoned an account opening process because it took too long
About This Report
This research surveyed 2,000 U.S.-based digital banking customers to capture trends in online banking account opening, abandonment, and identity verification processes. Breaking down responses into four generation categories: Younger Millennials, Older Millennials, Gen X, and Baby Boomers, the findings offer insight into the generational similarities and differences across online banking customers.
1 Millennials open online banking accounts more than any other generation.
All generations bank online. In fact, the number of baby boomers banking online (76%) is almost equal to that of millennials (77%). However, millennials disproportionately open new banking accounts compared to all other generations.
Last year, 49% of all new bank accounts were opened by millennials. This trend carries across every type of account opening including checking accounts, major credit cards, savings accounts, and retirement accounts.
2 Millennials are most prone to abandoning mobile banking activities.
Friction in the account opening process affects millennials the most, who are most likely to abandon an online banking activity. In fact, millennials are 53% more likely to abandon a mobile banking activity compared to Gen X, the generation with the second-highest abandonment rate, and 107% more likely than Baby Boomers.
Online Account Abandonment
3 Accelerating digital banking activities is key to reducing abandonment.
Slow speed of account opening in mobile is the key source of friction in digital banking. Customers reported that a lengthy or complicated mobile banking process was often the cause of abandonment.
Top Reasons for Abandonment
4 Biometrics are considered to be the most effective for online identity verification.
Compared to other authentication methods, online banking customers consider biometric authentication types to be the easiest and most secure. Eye scanning is perceived to be the best authenticator, next to facial recognition and voice recognition.