Raised in an age of evolving technology, many young consumers are still banking the way their parents historically have done.
This was a key finding from a report by Chicago-based Mintel, a global supplier of consumer, product and media intelligence.
According to Mintel, 33 percent of consumers aged 18 to 34 are using online banking services. In addition, 37 percent of those aged 18 to 34 say that “better customer service” would cause them to switch banking providers.
With numerous financial service options available, Mintel’s research also shows that younger consumers still have concerns about the security of online banking. About 40 percent of those who do not use online banking state it is because they “don’t trust transactions on the Internet”.
Also, with 80 percent of respondents in the 18 to 24 years old age group and 83 percent of those in the 25 to 34 age group owning debit cards, credit card ownership has been dropping in recent years for these groups.
However, Mintel said contact-less credit cards provide a new outlet for attracting new consumers, with over 60 percent of consumers in this age range showing interest in the newer option.
Consumers in this group are also looking more toward the future, Mintel said, with more than one-third of respondents in the 18 to 34 range stating that they already have a retirement savings account of some kind.
About a third of these consumers also have high expectations from the financial services industry, as they continue to look for quality personal service, either with or without competitive fees and interest rates or other bank offerings, Mintel said.