The ‘Millennials’ classification is not a meaningful way for financial institutions and FinTech firms to understand customers aged between 18 and 34, with younger and older Millennials displaying different financial priorities and technology preferences, new research has found.

The Mitek survey of more than 1,000 UK Millennials found that those aged between 18 and 22 are not yet financially independent, with 47.6 per cent most concerned about paying for education. Younger Millennials’ financial mindset consists of a short-term focus, demonstrated by their other main concerns – paying rent (43 per cent) and entertainment (33 per cent).

It is only when Millennials reach 29 to 34 that financial services become a more prevalent issue, with 43.1 per cent most concerned with saving to buy a house. Four in 10 of those aged between 29 and 34 are also looking to save money for travel and 33 per cent are saving for their retirement – compared to 26 per cent and 17 per cent respectively for those ages 18 to 22.

Older Millennials are also five per cent more likely to use mobile financial services than their younger counterparts, with one in five making a mobile purchase at least once a day. However, security concerns are preventing 29 to 34 year olds from making full use of mobile, with 88.5 per cent claiming that worries regarding ID fraud or data security prevent them from making transactions on their mobile, compared to 72.8 per cent of younger Millennials.

Sarah Clark, general manager of identity at Mitek, said: “Millennials have been the target of financial services providers for as long as they have been recognised as a category. However to date, efforts to attract them have largely been unsuccessful.

“Financial Institutions now have the opportunity to focus their efforts more sharply and cater for Millennials’ diverse needs at different stages in their lives. It cannot be a one-size-fits-all approach anymore. Financial institutions need to tailor their offering to appeal the lucrative 29 to 34 year old market, which is mobile-first, concerned about the security of their identity and willing to disengage due to poor service.”

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