More than half of young Americans expect to face financial hurdles this year, with credit card debt being the foremost concern. A new study from MeridianLink found that 60% of Americans ages 18 to 24 are bracing for financial difficulties. Additionally, one in five Americans across all age groups cited paying off credit cards as their biggest worry.
At the same time, younger individuals are increasingly inclined toward conducting their finances entirely digitally. A third of the survey respondents ages 18 to 34 plan to rely more on digital banking this year, compared to 24% of all respondents.
Overall, MeridianLink’s study, which surveyed 1,000 U.S. financial consumers, found that digital presence and omnichannel experiences are important to all generations. Some 36% of respondents expressed a desire for their financial institution to prioritize this.
Nearly half of respondents surveyed also expressed a strong desire for their financial institution to prioritize fraud protections in the current year. MeridianLink noted that “this demand for heightened emphasis on fraud protection resonates deeply with the changing expectations of consumers in an era where digital transactions and information sharing are fundamental aspects of financial interactions.”
Customer Service Is Vital
It’s worth noting that customer service quality affects consumer loyalty. A notable 30% of respondents said that they would be willing to switch financial institutions if they had to deal with subpar service at their local in-person branch. More than a quarter said they would make a similar change as a result of slow or fragmented service.
This problem gets more acute when you consider the constant technological innovations in the payments space, and how some companies struggle to keep their customer service up to par.
“Who do you contact when there’s a problem?” said Sophia Gonzalez, Analyst, Debit Payments for Javelin Strategy & Research. “Many Cash App users faced this exact question when they discovered duplicate charges on their Cash Card on June 26, 2023. To make the matter worse, Cash App’s in-app and phone support systems were also down on the same day, leaving startled customers unsure where to seek help.” Gonzalez recommended that customer service become more of a priority for fintechs, especially as new and unfamiliar features are being rolled out.
