Millennials are turning to wearable technology and mobile phone wallets, while Baby Boomers continue to use traditional banking methods, a new survey has shown.
According to new research from CREALOGIX Group, a provider of digital banking solutions, the younger generation is embracing new financial trends such as Open Banking, digital currencies and wearable technologies, while the older generation is less engaged with new banking solutions.
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Almost half (43 per cent) of millennials now use wearables such as smart-watches and mobile phones to pay for goods, compared with just 11 per cent of over 55s. Furthermore, 44 per cent of under-35s have never used a credit card, versus 24 per cent of over 55s, while one in ten (11 per cent) of millennials said that they do not use a debit card either.
One quarter of under-35s already use digital currencies, compared with just 4.5 per cent of over 45s. And when it comes to Open Banking, 50 per cent of millennials stated that they would like to have all their bills, accounts, investments – including digital currency – on one mobile app.
By comparison, just 12 per cent of over-55s said that they would use this service.
“There are complex and widespread changes taking place in the financial services sector, driven by the wider digital transformation in our society as a whole,” said Jo Howes, commercial director at CREALOGIX UK.
“The Open Banking initiative has potential to provide a more personalised service and the ability to cover an individual’s every need in a single secure app.”
More than nine in ten (91 per cent) of millennials said that they prefer to use banking apps and online banking, with less than two per cent using telephone banking and just six per cent visiting bank branches.