March 3, 2016
Millennials constitute more than 25% of the US population and are exceeding the baby boomer generation by three million. CPG or consumer goods packaged companies are turning their priority and attention to creating products which can cater to this significant population. Millennials are expected to spend more than $60 billion on CPG in the next decade with a demand for mobile, social and personalized experiences when shopping.
A powerful pool of active shoppers and mobile users attracts the attention of entrepreneurs looking to leverage opportunities in such a perspective market. Previously, we looked at the hottest companies unleashing millennials in their investments endeavors. This time, we will focus on alternative lending companies that are powering millennials in their financial needs.
Pave is a lending platform for millennials that need access to a loan. Borrowers on Pave receive loans up to $25,000 with personalized rates starting at 6%, payable over two- or three-year terms. Upstart is an online lending platform that uses data to bring together high-potential borrowers and investors. Upstart offers three-year, fixed interest loans. Funds can be used for almost anything, including starting a business, paying for a coding boot camp, eliminating student debt or paying off credit cards. Their proprietary underwriting model identifies high-quality borrowers despite limited credit and employment experience.
SoFi helps graduates of top-tier universities refinance student loans. The company focuses on student loans, mortgages and personal loans.
Vouch is a startup which vouches for credit on social networks. The company offers loans to people who get their friends and family to vouch for them by promising that if the borrower defaults on the loan from Vouch, they will pay it on behalf of the borrower.
CommonBond is based on a model of social lending. Student borrowers gain access to fixed-rate loans provided by investors who earn a financial return.
WeFinance is a crowdlending platform that matches people seeking loans with people with savings and helps them lend money to each other easily at an interest rate where both benefit.
Credible’s founding principle is to provide borrowers with the level of transparency they deserve. As a multi-lender marketplace that allows borrowers to receive competitive loan offers from its vetted lenders, Credible empowers consumers to take control of their student loans. Borrowers can fill out a form, then receive and compare personalized offers from numerous lenders and choose one which best serves their individual needs.
Bread is a new type of consumer finance company that lets users pay for what they need, one slice at a time.
Lenda (formerly Gorefi) is an online platform that enables individuals to refinance their home loans online.
Backed is a lending platform that provides online loans to the borrowers without taking credit scores into consideration.
Lenny offers low-interest rate credit lines exclusively via their dedicated iOS application. Lenny is a licensed lender in the State of California and caters to a large millennial audience. The company also offers initial credit lines of up to $500 to students based on their GPA. LendKey develops a cloud-based platform, enabling lenders to quickly, securely and profitably lend to anyone else.