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The CEO of a credit reporting agency recently spoke to how “credit active and digital” millennials are shaping the future of the borrowing landscape.
Simon Bligh, CEO of illion, explained how recent data has showed that “people are going for safety” when it comes to prioritising paying certain debts on time over other financial responsibilities.
“In the last 10 years, the importance of paying the mortgage, which is sensible in all sorts of dimensions, has gone up the ladder of priorities,” he said.
However, bills that are made difficult to pay get pushed to the back of the queue as millennials are more likely to first pay for the products they feel are better suited to their needs.
That said, the data from illion revealed that millennials would welcome additional reminders and avenues to pay their dues.
Bligh said, “Just as you take the friction out of lending, take the friction out of paying. That’s what customers want, but many aren’t getting that. Remarkably, 40% of people who are overdue are never contacted. Ten years ago, that was 10%.”
“If they are late, they want to be contacted using low-cost digital channels and encouraged to pay.”
On the millennial financial mentality, Bligh said, “[Think think] I understand I may not necessarily have a good credit score. That’s okay. Find a product that’s right for me. Let me understand where I sit, and how to improve my credit worthiness.
“Let me give you my data, let me understand the value of my data, and let me monetise my data with offers.”
The CEO went on to reiterate that millennials want to feel valued, whether through award mechanisms, better pricing, or direct rewards for strong credit scores.
Additionally, he spoke to a more hands-on approach evidenced in the younger demographic, saying that millennials are possessive of their data and are generally more eager to be involved with their finances than past generations.
“They absolutely want to control their money, want to know where it’s gone, what they can do with it,” he concluded.
