Open Lending, an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, and TransUnion, a trusted global information and insights company, today released a new study on the borrowing habits and credit outlook for Millennials and Gen Zers. Using data from over 4 million U.S. consumers, the report illustrates new-to-credit borrowers’ upward credit trajectory with insights into lending patterns and preferences. The report underscores the potential value Millennials and Gen Zers can bring lenders, with key findings showing:
“Many financial institutions are hesitant to extend loans to borrowers with thinner credit files and lower credit scores, who are often Millennials and Gen Zers,” said Kevin Filan, Senior Vice President of Marketing at Open Lending. “However, this strategic consumer segment shows immense potential for upward credit mobility compared to their older counterparts. The financial institutions that intelligently address these ‘emerging prime’ borrowers through comprehensive data analysis and decisioning can generate higher-yielding loan opportunities and long-term customer loyalty.” “We are excited to collaborate with Open Lending to provide a broader and more accurate picture of younger borrowers’ financial health and credit potential despite only just starting their credit journey,” said Satyan Merchant, Senior Vice President, Automotive and Mortgage business leader at TransUnion. “The more consumers who can participate in credit, the greater the opportunities for broad economic inclusion. The data from the study shows how thin-file consumers are capable of growing into healthy, prime borrowers once provided access to the essential milestone of an affordable automotive loan. We believe that the financial institutions that set these deserving borrowers on the path to financial wellness will be rewarded with long-term loyalty through subsequent credit products.” Download the full report here.
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Author: Mike LawsonMarried to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple. Archives
April 2024
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