The most common reason for this decline in confidence was concern about online fraud when using these platforms , with over a third ( 35 %) of UK adults citing this reason .

The study , conducted as part of a wider report on personalisation in banking , also analysed the recommendation scores of the 10 most popular providers in the Ipsos independent service quality survey over the last four years . This revealed that the percentage of customers who would recommend the most popular providers for online and mobile banking consistently declined during August 2020 – February 2024 , by an average of 5 %.

Brits are wary of data collection – particularly younger generations

This was very closely followed by 19 % of millennials ( aged 24 – 42 ) and 10 % of those in Gen X ( aged 43 – 54 ).

On the other end of the spectrum , only 5 % of baby boomers ( aged 55 – 73 ) and 3 % of the silent generation ( aged 74 +) cited this as a problem that would make them more wary of online and mobile banking .

The findings suggest that there could be big problems ahead for online banking platforms if these younger generations cannot be convinced that their data will be safe in the hands of their bank .

Commenting on the findings , Kate Steere , banking expert at personal finance site finder . com , said : “ Personalised app tools are a win-win for both banks and customers , as we can see from HSBC ’ s savings app feature , which launched yesterday . Customers get a tool that ’ s useful to them , and banks get more data on how each customer manages their money , or what they want to do with it .

“ However , it ’ s clear that banking providers have some work to do in gaining their customers ’ trust , particularly with the younger generations . If they want to truly harness AI ’ s capabilities and provide a personalised customer experience , they ’ ll need to reassure customers that their money and personal data are in safe hands . Banks that fail to do this will see customers vote with their feet and go elsewhere .” �

More than one in 10 ( 12 %) Brits said they had become more concerned about using online banks and banking apps because they believe too much of their personal information is being collected on these platforms . In addition , just under one in 10 ( 9 %) said that they don ’ t trust online banks and banking apps to store their personal information safely .

There was a clear generational divide when it came to this issue , with younger generations far more concerned about the collection of their personal information than their older counterparts . Just over one in five ( 21 %) of those in Gen Z cited the collection of their personal information as a reason for becoming more wary of online banks and banking apps over recent years .

20 www . intelligentfin . tech