Research highlights broken financial application system for younger generations
Almost two thirds of 18-24 year olds would find it inconvenient or impossible to provide a paper copy of a utility bill if asked during a financial application (64%), according to new research carried out by YouGov on behalf of Hello Soda.
The survey of over 2,000 consumers was commissioned by the big data and text analytics company to better understand the modern digital consumer, and the issues that young people face when verifying their identity such as during financial applications including when applying for a loan or mortgage.
36% of young people would even find it inconvenient or impossible to provide a paper photocopy of their passport, while this figure rises to 45% for bank statements.
Despite finding it difficult to provide traditional forms of ID verification, the survey found that younger people were largely open to allowing businesses to view their digital footprint. In fact, 56% of 18-24 year olds would allow a business to view their online behaviour and information if it benefited them, including social media activity and basic personal details.
Convenience was one of the most commonly cited reasons for this openness amongst young people. 34% of 18-24 year olds who were surveyed said that they would allow a business to access the basic details of their digital footprint if it saved time filling out forms.
James Blake, CEO at Hello Soda, said: “Our research shows that the current reliance by businesses on traditional methods of ID verification is alienating young people. Modern, digital customers value an efficient user experience, and most financial applications are failing to provide this through their current systems.
“Young people, who may be more likely to live with their parents and will therefore be unlikely to have utility bills in their name, are willing to use their digital footprint to authenticate. It’s up to individual businesses to make the most of this and offer processes such as social login as an optional route of access, or risk losing customers due to outdated procedures.”