24% of Consumers Don’t Trust Digital Account Opening Tech

Fifty-nine percent of consumers have opened new financial accounts in the past year, according to Account Opening And Loan Servicing In The Digital Environment, a PYMNTS collaboration with Finicity, a Mastercard company.

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Credit card accounts and traditional bank accounts are the kinds of accounts the greatest shares of consumers of all generations have opened in the past year.

The largest share of millennials, bridge millennials, Generation X consumers, baby boomers and seniors opened a credit card account, with a traditional bank account being the second most common type.

Members of Generation Z most often opened a traditional bank account, with a credit card account being the second most common type.

Among the consumers who have opened financial accounts in the past year, 24% have not done so digitally.

The top two factors that stop people from opening accounts digitally are having to submit too many personal details and not trusting the financial technology used to set up accounts.

PYMNTS data shows that among the consumers who are unwilling to open an account in a digital channel, 37% of mobile app users and 43% of web browser users say they are uncomfortable submitting too much personal data. Lack of trust in the technology is another commonly cited reason by both mobile app users (37%) and web browser users (37%).

Those are the top two factors cited by members of the oldest generations: baby boomers and seniors, Generation X and bridge millennials.

The reasons vary among the two younger generations. For both millennials and members of Generation Z, the most common reason for not feeling comfortable opening accounts digitally is that they do not have details handy. The second most common factor for millennials is that they don’t want to submit too many personal details, while for Generation Z it’s that too many documents are required for verification.