A Study on Malaysian Millennials Indicates Need for Companies to Adopt New Approach to Identity Verification10/13/2016

A LexisNexis® Risk Solutions study released today shows:

• 78% of Malaysian Millennials fear having their identity stolen through their online, mobile and app-based activities
• Less than 20% of Millennials in Malaysia fully trust financial institutions, communications companies, payment providers and retailers with handling their personal information
• Nearly 50% respondents state they will abandon the account opening process if the process is too long or there are too many steps
• Malaysian Millennials use an average of 3.4 different types of devices, making them ‘digital power users’

MALAYSIA – More than 80 percent of Malaysian Millennials do not fully trust financial institutions with their personal data, yet 70 percent of them acknowledge the need for these companies to obtain their private information to protect them against financial crime, according to a major new study focused on the digital behaviors of Millennials in Asia and globally.

Malaysian Millennials’ understanding of the need for financial companies to access their personal data contrasts sharply with survey respondents in Hong Kong, where less than half of the respondents felt it was necessary for companies to even ask for their personal information in order to verify their identity and prevent fraud.

The LexisNexis Risk Solutions study found that the biggest concern of Malaysian Millennials, the generation born between 1982 and 2004, is having their identity stolen via their online, mobile and app-based activities. Malaysian Millennials are typically more vocal about what they want compared to other consumers.

“The study findings show a significant disconnect between the concerns of Millennials and the information businesses need to ensure financial transparency,” said Thomas C. Brown, senior vice president, Global Market Development and U.S. Commercial Markets, LexisNexis Risk Solutions. “Consumers want to know that they’re protected from potential identity fraud, which banks and other companies can only provide if they have access to enough, and the right kind of, data to detect financial crime and bad actors within the system.”

Malaysian Millennials use an average of 3.4 different types of devices, making them ‘digital power users’. ‘Power users’ own more digital devices and use these to conduct a higher volume of transactions, including banking and shopping. Malaysian Millennials use online-only banks, therefore unsurprisingly more than 75 percent of respondents say they conduct financial transactions on various remote/mobile devices. ‘Power users’ are concentrated in Malaysia, Hong Kong, Mexico and the U.S.

Despite being digitally savvy, 70 percent of Malaysian Millennials are concerned about their online privacy, while 72 percent are concerned about companies collecting too much of their private information.

Chris Foye, market planning manager at LexisNexis Risk Solutions said: ““There is a need for financial institutions to recognise the differences in behaviour between Millennials and other digital users and address these concerns with tailored service offerings and market education. With nearly half of Malaysian respondents stating they will abandon the account opening process if the process is too long or there are too many steps, it is imperative financial institutions focus on providing a streamlined frictionless process.”

The study found that while Malaysian Millennials are concerned about online security, over half are frustrated by having to remember too many passwords, even though having different and frequently changed ones provides greater protection against fraud. Therefore, it’s not surprising that Malaysian Millennials seek the convenience of password management in a way that they view as being secure.

About the Study
LexisNexis® Risk Solutions conducted a survey of 2,804 Millennials during April and May 2016 across Hong Kong, Malaysia, the U.S., U.K., Germany, Mexico and Brazil. The purpose of the study was to uncover how much friction Millennial customers will tolerate in transacting with retailers, telecommunications companies, payment providers and banks. The findings offer valuable insight into millennials attitudes on information sharing and authentication preferences.

About LexisNexis® Risk Solutions
LexisNexis Risk Solutions is a leader in providing essential information that helps customers across industries and government predict, assess and manage risk. Combining cutting-edge technology, unique data and advanced analytics, LexisNexis Risk Solutions provides products and services that address evolving client needs in the risk sector while upholding the highest standards of security and privacy. LexisNexis Risk Solutions is part of RELX Group plc, a world-leading provider of information and analytics for professional and business customers across industries. http://www.lexisnexis.com/risk/