Trust is the cornerstone of any successful relationship. Without it, organisations risk not only losing customers and market share but will also face significant barriers to innovation and technological progress.
At the heart of this trust lies data. Businesses can only operate effectively if their customers feel confident sharing personal information with them. Yet, this exchange has become increasingly fragile, as data breaches and questionable data practices erode consumer confidence in institutions worldwide.
Thales’ 2025 Digital Trust Index, which surveyed 14,000 people across 14 countries, found that banking emerged as the most trusted industry for personal data sharing. At first glance, this may seem like an achievement—but it is far from cause for celebration. Only 44% of respondents named banking as a top trusted sector, a figure that remains stagnant compared to last year. In contrast, the threat landscape continues to evolve at pace, posing growing risks to consumer security and confidence.
Perhaps even more concerning is the generational divide in trust. Younger consumers are increasingly sceptical of financial institutions, raising urgent questions about banking’s ability to retain future customers.
So, why is trust declining among younger generations, and why should this serve as a wake-up call for banks? More importantly, what measures can financial institutions take to rebuild consumer confidence?
A Generational Decline in Trust
When looking at trust in banking, it peaks at 51% among the over 55s demographic and decreases – barely achieving a third (32%) of those aged between 16-24. A trend we’re seeing playing out across all the individual countries surveyed.
This sharp decline in trust among younger consumers presents a significant challenge for banks, as failing to engage these demographics risk long-term customer attrition, weakening brand loyalty, and diminishing the sector’s ability to evolve with the expectations of future generations.
Young consumers today have grown up in an era dominated by headlines about data breaches and financial instability. The 2008 financial crisis shaped their formative years, fostering scepticism about traditional banking systems – so perhaps it isn’t any wonder that we see the levels the way they are.
This scepticism translates into the information that younger customers are willing to share with these organisations. For example, not even half (48%) are happy to share their email address with banking organisations when signing up for online services, versus 65% of those over 55s.
Bridging the Trust Divide: Security & Technology as the Solution
Despite their scepticism, Gen Z is open to innovation—especially when it enhances security and transparency. Younger consumers show a clear preference for digital-first banking solutions that not only prioritise seamless, intuitive experiences but also provide robust security measures to protect their financial and personal data.
Challenger banks like Monzo, Starling Bank, and Revolut, have captured younger customers by offering transparent security features, real-time transaction alerts, and mobile-native fraud protection. These banks also integrate strong authentication measures, such as biometric login, AI-driven fraud detection, and instant spending notifications, ensuring greater control and confidence over financial transactions.
Security remains a top concern for younger consumers, particularly as data breaches and financial fraud continue to dominate headlines. According to recent research, 64% of consumers say their confidence in a brand would increase if it adopted emerging security technologies, including passwordless authentication, biometrics, and responsible AI usage. Among 16-24 year olds, this jumps to 69%, and 73% among 25-34 year olds, underscoring the growing demand for simplified yet highly secure banking.
Restoring Trust: A Security-Driven Approach
Financial institutions must prioritise transparency and security to rebuild trust among younger consumers. The rise of digital-first challenger banks has demonstrated that modern banking requires more than just convenience—it demands robust security frameworks that give customers confidence in their financial safety.
To meet these expectations, banks must embrace next-generation security measures, implementing biometric authentication, AI-powered fraud detection, and passwordless login systems that simplify user experiences while strengthening account protection. Multi-factor authentication (MFA) and transparent data practices further reinforce trust by ensuring consumers have greater control over their personal information.
The Future of Banking Hinges on Trust
Trust is the foundation on which financial relationships are built. For traditional banks to remain competitive, they must move beyond outdated security models and embrace digital-first protections that align with the expectations of tech-savvy younger generations. Those who fail to do so risk losing relevance to fintech disruptors that place security, transparency, and user experience at the heart of their offering.
Chris Harris, EMEA Technical Director, Data Security at Thales