Thursday, August 10th, 2017
Short Term Loan Solutions for the Young Millennial.
Millennials – who they are? Millennials are anyone born roughly between 1980 and 2000. Millennials are different when compared to their predecessors - generation x (born 1965-1980) and baby boomers (born 1946 – 1964). Interestingly, many boomers and millennials are parents and children of each other, and many Gen X parents aged 40 to 43 have millennial children. These young adults have a different set of experiences and behaviour than their parents largely because they grew up in a time of rapid technological advances, economic transformation and globalisation. Millennials are also known as the first generation of ‘digital natives,’ a metaphor used to help people understand that the attitudes of people who grew up in the pre-digital culture are different from the natives who grew up in a digital culture, where technology largely shaped the young demographic mind set. Due to the ubiquity of smart phones with 3G and 4G services, alongside high-speed broadband Internet, millennials, have become the largest group of smart phone owners and mobile web users, globally. They are a well-educated group, better connected to information and the world, due to mobile Internet. They are almost always online, social networking, researching or buying on the web. They prefer short-term spending over long-term saving, like spending on memorable experiences and instant gratification, instead of saving for a pension like their Gen X parents. They spend more money on festivals and travel, recreation and dining out. While a lot many millennials still overspend and need to borrow instant cash to pay an unexpected bill, they can turn to online lenders for instant cash with a few swipes on their smart phones. This young group, would rather share a cab than buy a car, or rent an apartment than buy a house, because they need more flexibility in terms of easy upgrades. For example, millennial couples living in Indian metros would rather rent a furnished apartment than pay heavy EMIs. Many would even rent consumer durables for easier upgrades. They prefer a fancy lifestyle that fulfil their passion, or a dream vacation and would spend money buying luxury watches, bags and perfumes. They live in the present. Millennials hop jobs for the better opportunity, and more money. Because this young salaried group grew up learning computers and the Internet, they are mentally conditioned to instant access. Millennials do everything from their mobile devices and buy everything online, including festival shopping or paying back a small vacation loan. If they need short-term cash loan for festivals and luxury purchases, or any other small need, they are willing to borrow from an alternative lender like CASHe. This group does not have the patience to queue up in a bank for paper work, and approvals. Plus many of them may not have the relevant credit score to avail a personal loan from a bank. But, they have the monthly repaying capacity. CASHe is an online lender who can help this young demographic group meet their extra financial needs up to 1 lakh. Benefits include lesser paperwork, more flexibility and faster funding. CASHe offers reasonable interest rates with flexible loan repayment options. The CASHe app can be installed on a smart phone for a loan credit in minutes. No need to step out. What does the millennial wave mean for Businesses? India’s millennial generation comprises the world’s largest workforce population, and is likely to become the country’s largest disruptive force in the coming years, stated a recent Morgan and Stanley report. A Dun and Brad Street report had in fact predicted that India would become the youngest country by 2020, with approximately 64% of its workforce population in the age group of 18 to 35, driving the Indian economy. Analysts opined that this group of 400 million aspirants, known as the millennial generation, or generation Y, will lead the country into long-term prosperity. Businesses and start-ups will need to align their strategies to engage and retain the millennial mind in order to stay relevant, and alternative lenders will need to find ways of supporting them. In few years from now, millennials are likely to have the ultimate spending power.