Much has been written about Millennials and their banking and payment habits that suggest the digital natives are entirely different than their older cohorts. Also, much has been written about how this group of 18 to 35 year olds are entirely dependent on their phones to conduct monetary transactions and are unconcerned or at least less concerned about their security and privacy. Finextra highlights a study conducted by VocaLink with over 5,000 participants that has some interesting data about Millennials that is counter to other reports. One finding is that plenty of Millennials are just fine using a financial institution and regard security and trust as valuable traits that FI’s bring to the table:
Cara O’Nions, Director of Marketing and Customer Insights at VocaLink commented, “Surprisingly, the element of ‘trust’ and ‘security’ was a priority for many of the millennials we spoke to, and as a result felt strongly that their bank was the preferred provider of payments technology. However, it is clear they still want to see further innovation from all payment providers, to respond to their need for ubiquitous and reliable instant mobile payments. At this stage, while a number of fintechs are still in the process of developing and fine-tuning their products and services, the banks have a substantial head start to provide or support a superb customer experience.”
Another interesting finding from the study was the use of checks. We have all heard that Millennials have never seen or written a check. This study suggests otherwise. 87% reported that they deposited a check and 71% write a check at least once a month, suggesting that checks, although certainly declining, will perhaps need to be supported for longer than anticipated. A link to the findings of this report can be found here.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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