Memo to bankers: Don't let fraudsters mess with a millennial's bank account if you want to keep their business.
All it takes is one fraud incident, whether it's identity theft, lost or stolen information, ATM skimming or a compromised account to send those millennials packing, according to a recent survey by FICO, the credit-scoring company.
The study showed that 29 percent of millennials will close all accounts with that bank after an incident, compared with about 22 percent of all U.S. consumers. FICO surveyed approximately 1,000 consumers in October and November 2015.
"The tolerance level is so low," said Alex Matjanec, CEO of bank comparison site MyBankTracker.
Millennials were also more likely to slam the bank on social media. One in four said they would make a negative comment on Facebook, Instagram or Twitter if the fraud incident wasn't handled well and another 21 percent would actively discourage their friends and families from using that bank.
"Consumers are looking for greater protection from fraud and sophisticated identity theft," said TJ Horan, vice president of product management at FICO. "Combined with the sharp increase in ATM compromises, it's clear that fraud prevention and communication are more vital than ever."
Perhaps fueling the willingness to flee was that customer experience was the most cited reason for opening and closing accounts, more so than fees, rates, locations and convenience, according to a separate survey on consumer banking by EY (formerly Ernst & Young).
In addition,"the growth of online banks and mobile banking lends itself to the ability to switch and the perception to switch," Horan said.