It’s official. Generational transformation is squarely upon us, with Gen X and Gen Y now making up half of the global population. This shift, coupled with their adoption of mobile digital technology, creates risk as well as opportunity for financial institutions.
Yet this trend is more than just about how these generations access financial services products and how they use their money, mobile digital technologies have changed how people prefer to be recognised. They no longer want to prove who they are, but rather they want to be recognised for who they are.
Our latest report, Mobile Identity – The Fusion of Financial Services, Mobile and Identity, reveals that Australian consumers using mobile banking applications want their mobile devices to instantly recognise them via biometrics, such as fingerprint and voiceprint, instead of having to prove who they are with passwords and usernames.
With this pace of adoption, it’s not surprising that smartphones are now the primary channel used by Gen X and Gen Y to access and manage their finances. This has resulted in a transformation in expectations around how financial institutions manage mobile identity. Incredibly, our research demonstrated that 47 per cent of those with a net worth of more than US $1million would share their DNA profile with a financial provider if it meant increased security for their finances.
With increasing mobility, Australian consumers want to access financial services anywhere, pay using their phones and acquire new financial products at any time. This has led to a behavioural state we are calling ‘no-finapp-phobia’ – the fear of being without financial applications.
To harness these changing trends, Australian institutions must relate to identity in different ways to address changing lifestyles and stages. This will help financial services providers personalise trust among customers, enabling them to better acquire and retain users, especially among Gen X and Gen Y.
Financial institutions are in a strong position to harness this change, as they are considered more trusted than other organisation types. The fusion of financial services, mobility and identity provides an opportunity to lead the creation of the Internet of Trust. These benefits, however, can only be realised through new models of collaboration within the broader digital mobile ecosystem.
For ‘no-finapp-phobic’ Gen X and Gen Y consumers, it’s time to create mobile identity solutions that instantly recognise them for who they are. The good news is that consumers are ready to travel on the journey with their financial institutions.
I will be speaking at Vantage about the fusion between financial services, mobile and identity, where I’ll explore this topic in detail.