How Millennials and FinTech Are Changing the Loan Process

Millennials, as they grow as a force in the market, are becoming incredibly important to companies and knowing how their lives differ from the previous dominating generation (the baby boomers) is important for any company that wants to gain their patronage.

There are obvious and well-known differences between the two groups. Familiarity with modern technology, for example, acts as a divider. But there are also less known factors that smart startups can use to create winning companies for the millennial market.

The relationship millennials have with the credit industry is very different to the one baby boomers had and have. After witnessing the 2008 financial crisis, millennials are incredibly wary of these institutions providing (supposedly necessary) loans that in turn lead to a solid credit rating. On top of that, thanks to changes made in the credit industry, those who actually decide to apply for credit cards have more difficulty when it comes to getting their application approved.

But then what do members of this generation do if they need a credit rating? Whether you trust the big banks or not, a positive credit rating is very much needed to take many of the conventional steps one takes in becoming a proper adult (car loan, mortgage, etc.).

FinTech saw this need and came up with a new borrowing experience. The startup Float allows its clients to take out micro-credit lines (from $50-$1000) that are linked with their debit cards. With an easy online application and an instant credit decision, it’s clear that this startup is going to positively impact the lives of many busy and stressed millennials desperate to establish themselves in the adult world.

Although Float is still in its early stages and not yet available nationwide, the company will definitely prosper in a market anxious for a new borrowing experience. Borrowing is definitely set for a makeover and naturally FinTech has stepped up to the plate.