The major banks have a vested interest in the future credit and fraud protection of Millennials. FICO conducted a survey on roughly 1,000 US consumers over the age of 17. According to the survey, Millennials are ramping up their efforts to reduce the risk of fraud. Millennials make up young adults between the ages of 18 and 34; they represent the largest portion of the US population with $200 billion in annual buying power. Banks are working harder than ever to give Millennials a better sense of control over fraud protection through the development of state-of-the-art fraud management platforms.
- 29 percent of Millennials will close all accounts with their bank after a negative fraud incident
- 25 percent of those young adults will share their negative experience on social media and a further 21 percent will discourage friends, family, and colleagues from using that bank
Peer-to-peer reviews are important to any company, more so than any marketing program. This FICO survey shows that Millennials have the tendency to display brand loyalty especially after a positive experience. In fact, 41 percent of Millennials who experienced fraud in the past year said that they recommended the bank to friends, family, and colleagues after a positive fraud management experience. Young adults expect a hassle-free experience when facing a fraud issue; consumers want banks to be diligent about resolving the issue with little or no sacrifice on their part.
Since banks are noticing that fraud prevention is of great concern to customers they are honing their efforts towards pleasing the largest US demographic. US banks like JP Morgan Chase, Bank of America, and Wells Fargo are initiating new educational campaigns, additional card protection, and enhanced communication with the consumer. Their prevention efforts are duly noted but still 40% of all surveyed banking customers are not convinced that any US bank is capable of providing full-proof protection from identity threat.
TJ Horan, Vice President of Product Management at FICO, said “Consumers will reward banks that save them the hassle or at a minimum reduce the pain of fraud. The way a fraud incident is handled can make or break a customer’s relationship with the bank, as well as influence its reputation among the customer’s peers.” Horan concluded with, “There is a strong desire from consumers to participate in fighting fraud through methods such as better alerts and communication with their banks…By closing this loop with their bank, consumers can help to protect themselves.”
With the increased visibility of fraud, data breaches and other financial crimes from the media individuals are rightfully wary of financial institutions and their ability to protect consumers. Feel free to read my in-depth article about fraud and Identity Theft tips.
If you have specific questions about credit feel free to reach out to us for a free credit review so we can give you insightful feedback and evaluate whether you are a candidate for credit repair, monitoring, or building.