25% Of Consumers Cite Data Security As Top Concern For Not Using Digital-Only Banks

With innovative solutions in banking technology on the rise, consumers are expecting more secure services from their providers. The trend of changing banks has become a more appealing and accessible option than it has been in the past. PYMNTS research on the reasons people switch primary banking providers gives credence to this competitive shift.

“Digital Banking: The Brewing Battle For Where We Will Bank” is a PYMNTS and Optherium collaborative study that considers 2,225 consumers in the United States to assess their interest in using digital banking services. Twenty-five percent cite their concerns about data security as a reason not to use a digital-only banking service.

See also: Digital Banking: The Brewing Battle for Where We Will Bank

The study reveals that security concerns tend to depress consumer interest in obtaining online banking services from non-banks. Forty-seven percent said that data security concerns drove their reluctance to switch their primary banking service provider, while 41% identified fraud risk as a reason for the same. Switching friction, trust issues, and worse banking experience in mobile and online were other significant reasons for disinterest in switching.

The importance with which the factors are ranked is comparable among all age groups surveyed. Thirty-three percent of baby boomers and seniors stated that data security is a lead concern, compared to 25% of Gen Xers, 16% of millennials and 17% of Gen Z consumers.

The consumers aged 31 to 42 years, also known as bridge millennials, present interesting findings, as 66% showed an interest in making a digital-only bank their primary bank. Additionally, they state fraud (23%), data security (19%) and trust (19%) as the top factors in choosing a banking service provider.