Millennials use their phones for everything — including preventing fraud.
A new study conducted by credit scorer FICO shows just how important millennials consider being able to monitor their financial accounts by phone. And if it’s important to millennials, it should be important to banks, since this generation represents over $200 billion in purchasing power.
Millennials are three times more likely than other generations to prefer being notified by a mobile app when suspicious activity occurs. Over half also want controls that dictate where or what types of purchases their card can make and the amount they can spend.
What do banks get out of this? The payoff for meeting millennial standards is pretty great:
- Forty-one percent will recommend their banking institution to family and friends after experiencing proper handling of fraud
- A quarter of millennials with mobile banking apps will connect daily
- Thirty-four percent went on to open an additional account with that bank after a well-controlled fraud incident
However, when banks don’t come through on their end of the deal, millennials are just a tad unforgiving:
- A quarter will write negative reviews on social media about their experience with fraud (25 percent)
- Many feel as though their bank doesn’t keep them safe from identity theft around the clock (40 percent)
- Almost one in six will close all bank accounts with an institution after an incident with fraud
So if banks do their share, they’ll have an extremely loyal customer and an influential advocate. And if they don’t… Well, banks can still function without customers, right?