New research from Beyond Encryption indicates that ‘account fatigue’ significantly impacts customer engagement with FinTech portals and platforms. UK consumers, managing about 119 different online accounts on average, report feeling overwhelmed by the sheer number of logins required, especially in the financial sector.
In the UK, the average consumer has 21 logins solely for managing financial or insurance services. This saturation leads to frequent password resets — nearly 40% of users request a new password monthly, and about 20% do so weekly. Furthermore, 14% of those with a higher number of accounts reset their passwords daily, nearly three times the average rate.
This widespread digital fatigue is a major challenge for the financial sector, inhibiting user interaction with online services. Pensions and life insurance providers report that only 30-40% of their customers annually access their portal accounts. Additionally, 60% of users find interfaces such as pension, mortgage, and insurance portals user-unfriendly.
Beyond Encryption CEO Paul Holland commented on the findings: “Our report outlines a need for financial services to acknowledge the issue of digital fatigue – adjusting strategies accordingly to enhance customer engagement. When you provide your customers with a portal, you may be making it easier for them to interact with you in particular ways, but you must be acutely aware that you are adding to their overall digital burden.
“It’s vital that financial services providers look for ways they can streamline access to their portals, enhance communication, and simplify navigation in order to bridge the significant engagement gap between customers and their platforms.”
The study further reveals that 65% of consumers prefer receiving communications via email, overshadowing traditional methods such as postal services (27%) or digital portals (7%). This preference underscores the potential for email to become a more significant channel in customer communication strategies.
Finally, the report highlights a consumer shift towards more integrated and user-friendly technological solutions. About 44% of participants are comfortable using single sign-on features, and 57% favour biometric authentication. These technologies could significantly reduce the burden of managing multiple online identities and improve overall user satisfaction.
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