#Millennials

the next
#MobileDisruptors
Research Report




Submitted by:
Zogby Analytics
Jonathan Zogby Chief Executive Officer
John Zogby Senior Analyst
Chad Bohnert Chief Marketing Officer
Zeljka Buturovic Survey Statistician
Marc Penz Systems Administrator

September 2015
Zogby Analytics
901 Broad Street
Utica, New York 13501
zogbyanalytics.com

2015


Polling
Market Research

Executive Analysis

The word that sets Millennials apart from all other age cohorts is technology. Its not that we all
dont live with new technologies but that this youngest adult cohort has never known anything
but new technologies, changing technologies, adjustment, adaptation, re-learning, new
adaptation, teaching to their parents and teachers, then more new technologies.

The Mitek and Zogby Analytics poll of 18 to 34-year olds who have smartphones does nothing
to contradict this assumption. Even before we look at the results, the sample itself tells the
story: Millennials with smartphones represent 86 percent of all in this age cohort. That is a
figure from our colleagues at Pew Research and it is from 2014 meaning that the growth
trajectory probably continues.

The 2014 Mitek Millennials survey found that their desire to do everything on their mobile
devices had the influence to be a commerce disruptor. This year, Mitek and Zogby Analytics
revisited Millennials' mobile preferences and found that this trend is not only accelerating, but
they now want to digitize all commerce through their mobile camera.

This year Mitek and Zogby Analytics are unveiling findings from new research of more than
1,000 Millennials showing their current mobile commerce preferences, their biggest hurdles
and what they expect in the future. What started with the selfie has evolved to commerce:
from banking, to shopping and to peer-to-peer lending. The findings show that 96 percent
consider the camera crucial to their smartphone and 68 percent say that they would rather
snap a picture than ever have to type something.

So what does the survey tell us?

Top findings include:

1. Almost all (96 percent) say their mobile camera function is either very or somewhat
important to them. Sixty-one percent of the sample of the Mitek survey told us they
would fix the camera immediately and nearly 50 percent said that their smartphone
was "practically useless" without a camera.

2. More than two in three of these folks (68 percent) prefer to use the camera for mobile
capture instead of ever manually typing information on their mobile device. More than
four in five (83 percent) say that mobile capture will be part of all transactions in the

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Utica, New York 13501


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Market Research

next five years.

3. Mobile means money for businesses racing to capture Millennials, with 42 percent of
the survey respondents making decisions on where to spend money or switching
companies based on what organizations allow them to accomplish with a mobile device
(up 6 percent from the 2014 survey). Also in the 2014 survey, more than half of
respondents said they would pay for goods using their mobile device. This year's survey
found that Millennials have moved beyond wishing, with 86 percent making
purchases/conducting transactions from their smartphone, with 11 percent doing so
daily. Twenty-eight percent of Millennials want to enroll for everything from a new
credit card, to a gym membership by taking a picture of their driver's license.

4. Mobile banking was the gateway snap that introduced Millennials to mobile capture.
Sixty-eight percent of Millennials say they received their first exposure to mobile
capture (taking a picture with a smartphone for data extraction purposes) using mobile
deposit. Banking is also the top industry where Millennials wished there were more
mobile capture functionality (40 percent) and a trend emerged showing that the more
money Millennials' make, the more they want mobile capture. Last year, only 34
percent of Millennials had deposited a check by taking a picture with their mobile
smartphone camera and this year 54 percent report making mobile deposits.

5. Thirty percent have never abandoned a mobile data entry process, but of those who
have, the primary reason was that the function was too slow (31 percent). It appears
that these are not just smartphone users, they are actually SMART smartphone users. A
majority (54 percent) said that security trumps convenience when using a mobile device
and 86 percent are willing to take a few additional steps to verify (their) identity when
opening an account or enrolling in a new service.

6. When it comes to providing proof of identity, 61 percent prefer the fingerprint, while
theyd also accept newer forms like facial recognition (32 percent) or voice recognition
(29 percent), or the old signature validation (21 percent).

7. This cohort frequently makes transactions and purchases via mobile sites or apps 49
percent at least a few times a week, 72 percent at least monthly (cumulatively) and only
11 percent claiming never. Just over half (51 percent) use what is known as a mobile

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901 Broad Street
Utica, New York 13501


Polling
Market Research

wallet, instead of credit cards, cash, or checks). When asked what theyd like to do in
the future: 19 percent said pass funds between friends by taking a picture of their debit
cards; 21 percent said theyd like to establish a budget by taking a picture of their
paycheck, bills, and bank statement to allocate where funds should be distributed; 39
percent said they would like to verify their identity with a digital ID instead of showing a
driver's license during in-person transactions. At least three in ten use mobile capture
for retail loyalty programs, credit card signups, health care, insurance payments, and
education.

8. Three in five already feel comfortable using mobile devices for exchanging money with
friends both sending (61 percent) and receiving (63 percent). This includes 83 percent
who said they were comfortable sending at least $500 this way and 48 percent
(cumulatively) who are fine sending at least $100. Their top concern with this method of
exchanging money with friends has little to do with the personal reluctance: 67 percent
worry about the money getting to the person its intended for.

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Analytics Tables and Charts

How important to you is the camera func[on of your

mobile device?
Not at all
important Not sure
0% 0%
Not very
important
4%

Somewhat
important
24%

Very important
72%

If your smartphone camera wasnt working, how would you react?
Percent
Immediately get it fixed without the camera the device is practically useless 32
Immediately get a new phone without the camera the device is practically
15
useless
Immediately get a new phone with an even better camera any excuse for an
14
upgrade!
Eventually get it fixed like a cracked screen, I can live with it for a while 21
Eventually get a new phone I can live with it for a while and will wait for a free
10
upgrade
Eventually get a new phone, with an even better camera I can live with it for a
5
while if my next smartphone will have a better camera
I wouldnt care if the camera was broken 2

Not sure 2

2015


Polling
Market Research

On average I take a sele:

Ten lmes a day or

more 10
Five lmes a day
13
Once a day
15
A few lmes a week
20
Once a week
10
Once a month
13
Once a year
3
I don't take seles
17

Have you ever used "Mobile Deposit" (deposi[ng a check by

taking a picture of it)?

Not sure
3%

No
43%
Yes
54%

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901 Broad Street
Utica, New York 13501


Polling
Market Research

Was Mobile Deposit the rst [me you used Mobile

Capture?

Not sure
8%

No
24%

Yes
68%

If possible, would you always use Mobile Capture

(using a camera to capture informa[on) instead of
manually typing informa[on on the mobile device)?

Not sure
17%

No
15%

Yes
68%

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901 Broad Street
Utica, New York 13501


Polling
Market Research

Do you agree or disagree that in the next ve years

Mobile Capture will be part of all mobile
transac[ons?
Not sure
Strongly disagree 8%
2%
Somewhat
disagree
7%
Strongly agree
43%

Somewhat agree
40%

If you have ever abandoned a mobile data entry process, what

The process was so
was the main reason?
I have never
slow on my mobile abandoned a mobile
device that I gave up data entry process

31 30
I had to enter too
much informalon

23
The process required
more informalon
than I had
immediately
available
I kept keying the
wrong informalon 10

6

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research


After you abandoned a mobile data entry process, what did you do next?
Percent
I was happy to access the company through another channel (went into a brick and
41
mortar location, called customer service, or went to their non-mobile website).
I found a similar company/service on my mobile device that would allow me to
19
complete my transaction.
I decided that whatever transaction I was trying to complete wasn't that important
14
and just gave up.
I accessed the company through another channel (a brick and mortar location, called
customer service or went to their non-mobile website) but was really frustrated by 14
the experience.
I haven't completed my transaction yet, but I'm asking around/looking for a company
2
that will allow me to complete this process on my mobile device.
Not sure 8
Other 2

Would you say that security or convenience is a higher priority for you
when using your mobile device

Security

54

Both are
equal

Convenience 26 Neither is Not sure
important
16 3
1

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

How willing would you be to take a few addi[onal steps to

verify your iden[ty on a mobile device when opening an
account or enrolling in a new service?
Not at all willing Not sure
2% 5%

Not very willing

7%

Very willing
48%
Somewhat willing
38%

How do you feel when a company asks you to verify your

iden[ty with a picture? (Choose all that apply)

I feel like they are
proteclng my
account informalon
with the latest
technology

64 I feel they are making
it more dicult for
me to access my I feel like they are
account colleclng
informalon on me
30 that they don't need

21

Other

1

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

If an unauthorized user was aaemp[ng to access your personal

accounts, do you think a human being (such as a call center
represenata[ve) or technology (such as biometric analysis)
would be beaer at detec[ng the fradulent user?

I think technology is
I think a human is beper at spoqng
beper at spoqng fraud both are
I think they
fraud about the same at I think humans are
29 spoqng fraud currently beper, but
28
in the future
23 technology will be
beper at spoqng
fraud Not sure

10 10

How oben do you make a purchase/conduct a transac[on

from the mobile site or mobile app of a business on your
smarphone?

Mullple lmes a year

14
Once a day
11
A few lmes a week
25
Monthly
23
A few lmes a year
13
Never
11
Not sure
4

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

Which of the following best describes your opinion about

downloading a new app to unlock a new service?

I will download a
new app for a service
I want to use
I only download apps
51 for companies with
whom I already have
a business
relalonship

I will download any
23
app to check out a
new service
I don't download any Not sure
12 new apps
Other 8
6
1

Have you ever made a decision on where to spend money or

switched companies based on what they allowed you to
accomplish with your mobile device (i.e. switched banks to get
Mobile Deposit)?

Not sure
11%
Yes
42%

No
47%

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

Today do you, or in the future will you do any of the following with your mobile device if they
were possible? (Choose all that apply)
Percent
Pay for goods using the device as a mobile wallet instead of credit cards, checks, or
51
cash.
Enroll for everything from a new credit card to a gym membership by taking a picture
28
of your driver's license.
Verify your identity with a digital ID instead of showing your driver's license during in-
39
person transactions.
Pass funds between friends by taking a picture of your debit card and a picture of
19
their debit card.
Establish a budget by taking a picture of you paycheck, your bills, and your bank
21
statement to allocate where funds should be distributed.
Not sure 21

Today, which of the following barriers, if any, are stopping

you from using your smartphone more? (Choose all that
apply)

Concerns about my data security 53

Concerns about idenlty fraud 52

It's not convenient enough 19

There are too many apps to download 22

I can't accomplish tasks that I want to complete on a

12
smartphone

None of the above 13

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

Which of the following industries do you wish would adopt more mobile capture
functionality? (Choose all that apply)
Percent
Banking mobile check deposit, transferring funds, opening new accounts 40
Retail sign up for loyalty programs without filling out any paperwork 30
Insurance ability to take photos to get quotes, enroll in a plan, claims 30
Credit cards ability to get an instant rate, conduct balance transfers, etc. 31
Healthcare the ability to take pictures for enrollment, authentication, etc. 30
Education enroll and pay for classes transfer funds on to meal cards all by taking a
27
picture
None 9
Not sure 12

Have you ever sent, or would be comfortable sending

money to a friend (or trusted individual) using a
mobile device?

Not sure
10%

No
29% Yes
61%

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

Have you ever received, or would be comfortable receiving

money from a friend (or trusted individual) using a mobile
device?

Not sure
9%

No
28%
Yes
63%

How much money are you comfortable sending to a friend (or

trusted individual) via your mobile device?

Less than $50

21
Less than $100
28
Less than $200
21
$200 - $500
14
$500 - $1,000
7
More than $1,000
8
Not sure
2

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research

What, if any, are your top concerns for peer-to-peer lending?

(Choose all that apply)
I want to be sure the
money gets to the
person it's intended
for

67 I would like more
transparency from
the person I'm
lending to (credit I have concerns
reports, background about how I will
checks, etc.) collect from my loan/
investment
26 I don't have any

concerns
20

13

What is the largest purchase you have made with your mobile
device?

Equal to or less than $100 40

Equal to or less than $500 28

Equal to or less than $1,000 8

More than $1,000 5

I have never made a purchase on my mobile device 14

Not sure 5

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Zogby Analytics
901 Broad Street
Utica, New York 13501


Polling
Market Research


Methodology
Zogby Analytics was commissioned by the Mitek to conduct an online survey of 1,006
Millennials (adults aged 18-34) with a smartphone.

Using trusted interactive partner resources, thousands of adults were invited to participate in
this interactive survey. Each invitation was password coded and secure so that one respondent
can only access the survey one time.

Using information based on census data, voter registration figures, CIA fact books and exit polls,
we used complex weighting techniques to best represent the demographics of the population
being surveyed. Weighted variables may have included age, race, gender, region, party,
education, and religion.

Based on a confidence interval of 95 percent, the margin of error for 1006 was +/- 3.2
percentage points. This means that all other things being equal, the identical survey repeated
would have results within the margin of error 95 times out of 100.

Subsets of the data had a larger margin of error than the whole data set. As a rule, we did not
rely on the validity of very small subsets of the data especially sets smaller than 50-75
respondents. At that subset we could make estimations based on the data, but in these cases
the data is more qualitative than quantitative.

Additional factors could create error, such as question wording and question order.

About Zogby Analytics:

Zogby Analytics is respected nationally and internationally for its opinion research capabilities.
Since 1984, Zogby has empowered clients with powerful information and knowledge critical for
making informed strategic decisions.

The firm conducts multi-phased opinion research engagements for banking and financial
services institutions, insurance companies, hospitals and medical centers, retailers and
developers, religious institutions, cultural organizations, colleges and universities, IT companies
and Federal agencies. Zogby's dedication and commitment to excellence and accuracy are
reflected in its state-of-the-art opinion research capabilities and objective analysis and
consultation.

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901 Broad Street
Utica, New York 13501