A new research report released today found that while Millennials depend on their digital devices, they are still uneasy sharing personal information to open bank accounts. The report, UK Millennial Study: Privacy vs. Customer Experience in Financial Services, focused on UK Millennials’ tolerance of friction when opening new bank accounts or credit cards, and their level of comfort when sharing personal information online and on mobile. The report was published by LexisNexis Risk Solutions.
Despite Millennials being digitally connected via smartphones and laptops, nearly two-thirds (64%) worry about the risk of online privacy, and over half (52%) are concerned about having their identity stolen through online, or mobile/app-based activities. Nearly half (48%) surveyed expressed their concerns about entering and viewing banking information a mobile device.
The research also found that (61%) of Millennials in the UK prefer to open a new bank account in-person, and just under half (47%) would rather open a credit card account in-branch. When asked to provide a reasoning for this, over half (53%) stated that they found it intrusive to provide the level of financial information required to open a new account online, and 49% confirmed that they found it easier to open a new account in-person, which further suggests that the online process is not as efficient as banks’ Millennial customers would prefer.
Further highlighting the importance that Millennials’ place on opening a new account in-person, respondents overwhelmingly stated that they would be willing to wait more than 30 minutes to open a new account in branch (63%), and less than half (48%) said that they would wait for the same length of time to open an account online.
Many banks risk losing new customers if the level of information requested is considered intrusive. Worryingly, the majority of respondents (38%) stated that they would terminate a new account opening session if they felt uncomfortable with the information being asked, and 21% would do so if they felt that they were being asked for too much information.
Steve Arnison, Director, LexisNexis Risk Solutions said:
“These findings highlight the unease that many Millennials feel about information sharing, particularly when it comes to online and mobile transactions. Financial Services organisations today face the challenge of balancing the level of friction that customers will tolerate with the need to safeguard against fraud, and whilst continuously innovating to meet the demands of an increasingly digitally-savvy customer base.”