Half of 18-24 year-olds lack trust in the traditional banking transactions used by high-street banks, according to new research from financial regulatory compliance firm Neopay.
Of the 2000 ‘millennials’ polled one in three said they would trust a technology company, such as Google or Apple, with their e-money transactions whilst just 47% have had face-to-face contact with someone from their bank.
Interestingly, older generations – such as those aged 45-54 (24%) and 55-64 years (17%) – had less concerns in trusting their high-street bank with transactions. This suggests younger consumers no longer consider traditional banks as the only option for managing their finances with more and more opting to handle money digitally through e-money channels.
Scott Dawson, commercial director at Neopay, said: “Traditionally, banks have been synonymous with dependability and solidity. However, since the banking crisis, the sturdiness of banks has been cast into doubt. Also, the increasing frequency of scandals, combined with concerns about infrastructure and reliability, and the increase of automated processes have all served to erode trust and undermine the reputation of our banks."
“At the same time, we’ve seen the emergence of new technology companies that are rich with our personal data and are seen to be fueling much of the innovation and growth across the wider economy."
“Young people still trust banks, just to a much lesser extent than in previous generations. Other providers of financial services, such as Apple Pay or pre-paid cards are now very much seen as credible alternatives,” he added.