Younger customers shunning Web banking

Younger customers shunning Web banking

Around two thirds of younger consumers are shunning online banking services, according to a US study by Mintel, which found that 40% of these 18-34 year olds "don't trust transactions on the Internet".

The study found that only one-third of consumers aged 18-34 are using Internet banking services, with the remainder preferring the human touch.

Susan Menke, senior financial services analyst for Mintel, says the result is surprising given that these generations have grown up with the Web.

Furthermore the research shows that younger consumers still have major concerns about security of online banking. Some 40% of those who do not use net banking says it is due to security concerns over financial transactions on the Web.

Menke says financial services companies continue to elevate their level of safety and security messaging to their consumers but younger groups "do not necessarily have their fears laid to rest".

The study also found that 80% of 18-24 year olds and 83% of 25-34 year olds own debit cards, but credit card ownership has been dropping in recent years for both groups.

But Mintel says contactless credit cards may provide a new outlet for attracting new consumers, with over 60% of 18-34 year olds showing interest in the technology.

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