Young people are less likely to head to bricks-and-mortar banks to handle their finances, a new study by research company Toulna has revealed.
The study showed that 18-34 year olds are more likely than any other age bracket to use digital finance services, with 65% of those in this age group using mobile banking apps compared with 23% of those aged 55 and over.
Research also showed that only 45% of 18-34 year olds are still visiting their local bank branch, compared with 61% of aged above 55.
Younger demographics are still significantly more likely than both the 35-54 and 55+ groups to prefer non-traditional banking methods (mobile apps, virtual payment cards, cryptocurrency and video chat).
For example, 58% of those aged 18-34 said they would prefer to use mobile apps when dealing with financial services providers as opposed to just 21% of those aged 55 and over.
Nearly a quarter of those aged between 18 and 34 years old would like to use video chat in the future when communicating with their bank, credit card provider or investment firm.
Michael Worledge, finance sector head, Toluna said: “The public has had a massive nudge towards digital channels over the past few months. It’s not a surprise that older groups still prefer more traditional ways of dealing with financial services, and it does highlight a continued important role for branches.”
He added: “The pandemic has had the effect of enabling many people to be more comfortable managing at least parts of their finances digitally, and many want to do more than they can currently.
“Providers will need to understand where and through which channels customers want to do more, accelerate their digital strategies, and ensure excellent customer journeys.”