Most Consumers Now Comfy with Online Closings
After a year of the pandemic, 81% of adults say they’re okay buying things – even expensive things – online, especially with extra authentication and verification steps.
NEW YORK – The COVID-19 pandemic fueled an acceleration in online transactions, including in real estate. As a result, a majority of U.S. adults are comfortable completing financial purchases digitally, finds a new survey released by Notarize, a company that offers remote online notarization.
Four out of five (81%) of the 2,000 adults surveyed said they feel secure during online transactions, notably if they offer extra authentication and verification steps to make them feel safer when doing so. Specifically, more than half of the people who completed financial transactions online said that two-factor authentication (a confirmation code sent to a separate device) and security questions helped make them feel more secure.
Older generations appear to feel most secure with online transactions. Consumers 45 to 54 years old felt the most secure completing online financial transactions (87%) compared to younger adults aged 18 to 34 (79%).
Those younger adults say they feel most comfortable with online financial transactions if they also have the option to talk to customer service by phone or online (53%). Americans between ages 45 to 54 say that two-factor authentication (56%) and security questions (61%) make them feel safer.
The awareness of online notarization – another piece to digitizing more financial transactions – is highest among younger generations (18 to 34 years old and 35 to 44), while awareness drops off significantly among older Americans, 65 and older, the report finds.
“Even the most traditional, in-person transactions have quickly shifted online and, as a result, consumers are rethinking every facet of how they conduct sensitive financial transactions digitally,” says Pat Kinsel, founder and CEO of Notarize. “The data confirm what we at Notarize know to be true – people trust digital transactions but still want safety and security throughout the process, and are willing to go through the extra steps to give them peace of mind that their transactions are verified and safe. The takeaway for businesses is to make sure you enable technology that provides ease, speed and security if you want to keep your customers coming back.”
Notarize was part of Second Century Ventures’ 2017 REach program, a strategic investment arm of the National Association of Realtors®, that helps companies launch into the real estate, financial services, banking, home services and insurance industries spaces.
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