“Millennials and Gen-Z embrace digital banking and ‘mobile-first’ payment mindset. Could that be a problem?”
A recent report commissioned by Chargebacks911 and The Strawhecker Group (TSG) reveals that consumers under the age of 35 prefer managing their finances through a mobile app, with 72% of millennials and Gen-Z individuals expressing a preference for mobile banking. Additionally, young people are more likely to opt for mobile payments over traditional credit or debit card payments.
This shift towards mobile banking and payments has significant implications for the fintech industry. As younger generations continue to age and become the dominant voices in the industry, their preferences will shape the standard for banking and payments. However, there are both positive and negative ramifications to consider. On one hand, a digital-first approach can provide a better user experience. On the other hand, it may remove important friction points, such as the ability to dispute charges.
In fact, the report shows that mobile apps are the second most-preferred method for filing disputes. This convenience could encourage irresponsible use of chargebacks and send the message that disputes are an easy way to get something for free. It is important for the fintech industry to strike a balance between providing convenient and customizable experiences while also educating consumers about responsible use of mobile banking and payment apps.
The industry can play a crucial role in setting new norms by prioritizing consumer education and providing clear guidelines for proper use of these tools and platforms. As the industry experience a generational transformation in payment and finance, it is important not to take this moment for granted.