Today Jumio, the leader in digital ID verification, debuted key findings from a recent survey that evaluated the opinions of more than 700 millennials about their mobile banking experiences. Although 92 percent of millennials confirmed that they use their devices for mobile banking more than any other service—including shopping—the data also revealed key technology gaps within current mobile banking options.
Given that millennial buying power will reach $1.4 trillion by 2020, it is critical that banks and financial institutions address these gaps and concerns, which include uncertainties about data security and frustrations with forgotten passwords that lead customers to abandon their transactions all together.
In fact, 93 percent of survey participants confirmed that they have abandoned a mobile banking transaction—applying for a credit card, opening a new account or simply accessing an existing account—on at least one occasion. The primary challenge millennials cited in these transactions was a forgotten password, further emphasizing the need for banking institutions to look beyond password authentication to ensure customer engagement.
“The digital transformation of banking and financial services creates enormous opportunity for both customers and businesses, but the insights from our research confirm a critical need to improve customer experience to meet the requirements of millennials,” said Jumio CEO Stephen Stuut. “The security and frictionless customer experience offered by digital ID verification make it an ideal tool to fill the existing gaps in the mobile banking experience.”
The research also revealed that banks and financial institutions have significant issues to address when it comes to earning millennials’ trust. Survey participants reported their top concern as fear of their information being hacked as a result of their accessing accounts from a mobile device. Millennials rated this even above concerns of fraud and secure information transmission.
Additional key findings from the survey include the following:
- Applying for a bank account is the most common financial service millennials access via mobile devices, with more than 80 percent of participants reporting that they have done this at least once
- The vast majority of millennials (94 percent) want financial services providers to offer the ability to scan passports and drivers’ licenses in order to authenticate their identities
Stuut continued: “As concerns around data security reach new heights, the call to action for businesses is clear – protect customers from fraudulent account access by creating new ways to validate identity that make the customer experience more seamless, not more complex.”