A new study from CybSafe, the human risk management platform, found 56% of parents were more likely to sign their child up with a bank if the institution offered training about staying safe online. The research, which examined parents' perceptions of banks' roles in promoting online safety for kids, also revealed 82% of parents believe banks have a responsibility to teach children about cyber risks and how to avoid them, highlighting a critical gap in cybersecurity education for young customers.

Among those surveyed, only 27% of children under 18 used the same bank as their parents. 50% of respondents said their child(ren) did not have a bank account, and just 19% stated their child(ren) used the same financial institution as themselves. With more parents opting for different banks than their own, the era of digital banking alternatives like GoHenry may be significantly impacting the influence legacy institutions have over younger parents. 

An opportunity for banks

The study looked into how the availability of online safety resources for children would impact parents' decisions when choosing a bank for their kids. The results reveal a significant opportunity for banks to attract and retain customers by offering such perks. 

Only 20% of the parents surveyed indicated the presence of such training wouldn't impact their decision when selecting a bank for their children. 23% of respondents said they would still prefer to use their own bank, regardless of the availability of online safety education for minors. This suggests customer loyalty is still a factor in parents' decision-making process when choosing a bank for their children. For the majority (56%), however, additional security measures and resources would be enough to sway their choice of provider, emphasizing the increasing prominence of online protection in consumer decision-making. 

Parents are unsure if banks are doing enough

Less than half (48%) of the parents surveyed thought their child's bank was doing enough to keep them safe online. This leaves a majority of parents either unsure or unconvinced of the ability of financial institutions to protect minors in the digital age.

A small but significant portion of respondents (7%) firmly believe their child's bank is not doing enough to ensure online safety. However, an even larger group (44%) remain uncertain about their measures. This presents a valuable opportunity for institutions to differentiate themselves in the market and build trust with parents by integrating comprehensive cybersecurity features into their offerings for minors and parents alike.

Dr Jason Nurse, Director of Science and Research at CybSafe said: “Our research reveals a clear demand for banks to play a more active role in promoting online safety for minors. Financial institutions now have an opportunity to not only provide an important service but also make a lasting impact on the cyber behaviors of the next generation. By incorporating effective cybersecurity tools into their offerings for minors and parents alike, banks can demonstrate their commitment to safeguarding their customers in the digital age.”

“Through nudges, engaging tools, and the ability to measure security behaviors, banks can teach young customers how to identify and respond to suspicious emails, texts, and websites, empowering them to take control of their online safety from an early age. By equipping children with these essential behaviors, banks can help foster a generation of digitally savvy and security-conscious individuals who are better prepared to navigate cyber threats."