As stories of banking data breaches continue to hit the headlines, consumers are increasingly sceptical about the security of their online bank accounts. New research by IDEX Biometrics ASA reveals that Generation Z are particularly concerned by banking fraud.
According to the report, nearly eight-in-ten (79%) of those in Generation Z think banks should do more to protect their customers from fraud.
The youngest wave of consumers expect this level of security even more strongly, with 95% of 16-17-year olds agreeing banks should step up fraud protection for their customers.
For those in Generation Z, banking in the digital age isn’t just a convenience, but also a source of risk. In fact, more than half (52%) of our respondents are worried about someone stealing their identity.
Worryingly, young shoppers also aren’t confident in the ability of banks to deal with cases of fraud. Only half (54%) of respondents are confident that their bank would refund them any losses if someone fraudulently accessed their bank account and stole any amount of money.
To reduce their security concerns, Generation Z wants to see banks adopting new technology that will offer better protection against the risk of card and online fraud. Notably, three-in-five (62%) think banks should offer biometric payment cards to help reduce levels of payment fraud.
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Maybe unexpectedly, young shoppers are willing to pay for additional convenient payment security. More than two-in-five of those in Generation Z (43%) would expect to pay for a biometric payment card, while a third (33%) would be willing to pay between £3-£5 per month for a debit or credit card with fingerprint protection rather than a standard one.
“There is a clear emphasis on banking and payment security among Generation Z. Younger shoppers already understand the importance of protecting their bank accounts and cards, and they’re excited by a future that uses biometric technology to achieve this,” said David Orme, SVP, IDEX Biometrics ASA.
“Generation Z are familiar with fingerprint authentication in smartphones and payment apps and understand the level of security they provide. Because of this, adopting biometric fingerprint payment cards is a small but crucial step to protect the next wave of consumers from payment fraud, without inconveniencing their lives.”