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May 16, 2023 468

71% of Gen Z Consumers Prefer Banking via Smartphone for Security

#Fintech

An interesting study was conducted by "PYMNTS" and "Intersekt" sources in the USA, the largest markets of the mobile banking and Fintech sector.

The results of the survey of about 2,600 users show that 71% of the younger generation prefer mobile banking for payments. The most important issue is the reasons for this.

The report shows that one of the most important reasons why the younger generation prefers mobile banking is biometric security and the trust created by smartphones. In most cases, older users who are not as connected to smartphones as the younger generation seem less likely to use mobile banking solutions in parallel. It is even strange that digital payments made with equipment such as computers rather than mobile devices are considered more convenient for them.

“Young consumers lead the charge, with 71% of Gen Z respondents reaching for their smartphones more frequently than other devices to complete online financial activities,” the study stated. “Millennials and bridge millennials were not far behind, at 68% and 66%, respectively. Most Gen X banking customers favor smartphones for digital financial activities, with 63% of respondents in this age group reporting that they chose mobile over desktop more often than not.” Baby boomers and seniors are the holdouts, as just 34% use smartphones for most of their online financial activities and transactions, with 56% preferring computers. “These older consumers are also 64% more likely than the average consumer to believe computers are more secure than smartphones,” the study found. “We note, however, that when it comes to sending or receiving money to and from family and friends, 54% of baby boomers and seniors tend to reach for smartphones and just 35% for computers.”

Even with the higher levels of trust in online banking, regardless of device preference, consumers still want authentication challenges at appropriate times, like when signing on from a different device. Approximately half of the consumers surveyed “want manual authentication for every higher-risk activity they conduct,” the study stated. “Specifically, 52% of respondents want to authenticate their identities each time they access their bank account, and 47% say the same for cash transfers to or from family and friends. Even with the ubiquity of online transactions for goods and services, 42% of banking customers still prefer to authenticate their identities each time they finalize purchases.”