Fintech Less Appealing to the Elderly Due to Trust Issues

January 12, 2018         By: Steven Anderson

If I told you that the denizens of Generation X were more than twice as likely to try a digital payments solution as their baby boomer equivalents were, would you be surprised? Or would you roll your eyes so hard they departed your skull and headed for the next county over? A new report from Canada’s found out that the division is quite real, and for the standard reasons.

The Ratehub study found that millennials were the leaders in terms of mobile and contactless payment options. Moreover, millennials were also front-and-center in terms of using other automated services; 44 percent were ready to trust an automated advisor, and that’s compared to 23 percent of baby boomers.

However, if 44 percent are ready, 56 percent are not, and that may be the biggest surprise of the survey. The hesitant millennials cite issues of security, privacy, and even overall trust as the leading reasons they’re not turning to automated systems.

The good news for banks is that the gap between “I don’t trust it” and “I’m already using it” isn’t that far; 61 percent of respondents believe their data is “somewhat secure.” Just 22 percent said that their data was either “inadequately secure” or “not at all secure,” showing that there’s room for improvement, but there may not be that much room to getting a lot of new users on board.

Ratehub itself noted “Eighty-six per cent of respondents conducted some form of research before choosing a financial product. Whether they use the internet, seek advice from family, or use the resources at their bank branch, Canadians often seek multiple sources of information before applying for a new product.”

Some will never trust a new technology, and the fact that studies show we’re down to about 22 percent who believe information online isn’t secure even as things sit today suggests we’re getting down to that hard core that will likely never be convinced otherwise. That’s good news; it means the efforts made to improve security are paying off and bringing in new users.

We may at last be approaching the high-water mark for fintech users of all stripes, and that means quite a few more new users to bring on board. Mobile payments’ best days are likely still in front of it.