Joint research released by PMYNTS and Entersekt highlights the trust gap that still exists between banks and customers expecting a high degree of security during onboarding and authenticating online payments.

Compared to the majority of customers that trusted their bank’s security protections, gen-z customers that participated in the 2022 survey gave differing responses to suggest banks are not deploying the authentication barriers to protect customers’ data.

The generational divide in satisfaction puts more emphasis on the future roadmaps that the financial sector is plotting to ensure security, where the risk level of fraud and money laundering is extremely high, justifying a significant stake in identity technology.

In line with calls for the banking sector to take a greater stake in identity, the blunt results of the report suggest that banks should focus on delivering services of the future, replacing easily penetrable passwords for biometrics and exploring fraud-prevention solutions that retain a customer-centric approach.

Additionally, online and contactless payment methods through mobile apps and digital wallets embolden demands for consumer trust. The study shows the uptake in mobile banking: “nearly three times as many U.S. consumers now prefer to access their bank accounts using smartphones rather than computers”.  71% of consumers used their smartphones more frequently than other devices to make payments.

47% of consumers used biometrics, indicating that newer face recognition technologies are more secure. Around half of all customers believe that financial institutions should be deploying more security protections, in particular younger generation X customers (52%), Gen Z (57%), bridge millennial (64%), and millennial (63%) consumers.

2,600 U.S. consumers were surveyed.