The Credit Catch-22: How Young Adults are Redefining Credit and Lending Norms

Credit and lending are not what they used to be. Rather, younger generations are tapping into credit and lending differently than previous generations. The evolving needs and expectations of younger consumer generations, particularly Generation Z (Gen Z), are set to transform the entire credit and lending landscape.

The question is whether financial institutions are ready.

Financial institutions are at a pivotal juncture, facing what could be an existential crisis if they fail to adapt to these changes. The traditional credit scoring and lending models, which have long dominated the industry, are proving inadequate for a generation markedly different from its predecessors regarding economic challenges and technological engagement.

It’s a critical crossroads for FIs, with many unaware or stuck in a loop of inaction. Some are taking notice and seeking technology solutions that make it easier to serve younger, future generations of consumers. Some of them were at the FinovateSpring 2024 conference. What we’re doing with Bloom+ and consumer-permissioned data……

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