Superior Security Drives Switching Decisions, But What’s Up With Gen-Y?
Javelin’s 2012 Annual Security Report shows banks how to move the needle on security issues while boosting Gen-Y relationships.
The 2012 Antivirus Software and Browser Security Report, a study from Javelin Strategy & Research, shows that superior security drives bank loyalty, with one-third of household financial managers indicating that security is one of their top three factors taken into consideration when choosing a new financial institution.
However, Gen-Y (those born between 1979 and 1999), often thought of as the most “plugged in” generation, have a false sense of digital security. For instance, almost one in ten Gen-Y consumers do not use antivirus software because they use a Mac. Yet last month, more than 600,000 Macs — commonly perceived as the most impenetrable computer — were infected with “Flashback” malware.
Gen-Y’s Casual Attitude Towards Digital Security
Gen-Y is aware of security solutions; yet, just 56% of them actively protect themselves against malware vs. 68% of Baby Boomers. Cost of security software is a major factor for Gen-Y consumers. However the decision to forgo electronic security is more than just an issue of money. Their overall comfort with electronic channels has fostered a less cautious approach to how they handle their online activities. Ironically, this wired generation is precisely those who would benefit most from antivirus and antimalware solutions.
Gen-Y is a key target market for financial institutions. Their incomes are rapidly rising and will surpass all other demographic groups by 2025, clearly making them a lucrative, attractive and vital target market. As banks and credit unions focus on shifting everyone into more cost-effective electronic channels, it is tech-savvy Gen-Y consumers that are the demographic most responsive digital tools and online solutions.
In its 2012 security report, Javelin provides key recommendations to banks and credit unions on how to connect with Gen-Y consumers and turn these cavalier security daredevils into loyal and profitable customers. The report also explores how security software suppliers and potential distributors (including financial institutions, billers and issuers) have the opportunity to build mutually beneficial relationships through secure distribution channels.
“Financial institutions can work with security software suppliers to build consumer trust in online channels,” said Jim Van Dyke, President of Javelin. “They will want to onboard Gen-Y as early as possible to control switching costs, maintain consumers’ satisfaction, transition consumers away from more costly physical channels, and develop long-lasting and profitable relationships.”
“If financial institutions really want to move the needle on security with Gen-Y, they need to educate consumers the right way, because simply promoting antivirus and antimalware software isn’t effective,” said Vic Wheatman, Senior Director of Security, Risk & Fraud at Javelin. “We outline the steps financial institutions need to take to raise awareness of Gen-Y’s vulnerability and engage consumers at the outset, so consumers will actually apply the security measures they need to bank safely online.”
For additional details on the “2012 Antivirus and Browser Security Report: How to Profit by Engaging the Gen Y Consumer Today,” click here.
Javelin Strategy & Research provides strategic insights into customer transactions that increase profits for financial institutions, payments providers, merchants and other financial technology companies.Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem. Search For More: News, Gen-Y, Javelin, Security, switching
All content © 2013 by The Financial Brand and may not be reproduced by any means without permission.
