Banking providers must overhaul lending for digital millennials
Millennials have more contempt for credit card debt than other generations so they are seeking new lending options with greater flexibility. They want a new breed of loan, and they are increasingly willing to take their business to megabanks and alternative lenders if that's what it takes to find it.
Although Millennials may not be settling down in the suburbs in their 20s like the last two generations before them, they still want to pursue the American dream of homeownership. According to research from TransUnion, almost three-quarters of Millennials who don’t already have a home plan to purchase one in the future — a move that will require a mortgage loan.
And sure, Millennials may be heavy users of ride-sharing services like Über and Lyft, but four in five either own or lease a car. As it turns out, TransUnion found Millennials have actually opened auto loans and leases at a rate about 2-3% higher than Gen X.
But let’s assume for a second that even if Millennials had a lower appetite for debt than their predecessors (which they don’t), their sheer numbers would make up for it. Today, there are more Millennials than Baby Boomers, and Gen Z — the next generational segment — is about the same size as Millennials. This means there’s a big demand for lending products, and retail financial institutions can count on an expanding need for lending products, possibly at the highest levels ever seen.
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