Student Loan Debt Is a Big Blind Spot in Financial Fitness
- Date:December 05, 2022
- Dylan Lerner
- Report Details: 8 pages, 3 graphics
- Research Topic(s):
- Digital Lending
- PAID CONTENT
Banks and credit unions can play a crucial role in the financial lives of student loan accountholders, regardless of whether the institutions themselves issue student loans. And for FIs to advance along Javelin Strategy & Research’s Digital Maturity Path, it’s in their best interests to build stronger borrowers and serve upwardly mobile customers, as those who are bearing student loan debt tend to be.
However, student loans are a boulder blocking the path to financial security. FIs that use digital banking to coach customers on how to get around that boulder will be well-positioned to serve their needs for deposit accounts, auto loans, mortgages, investments, and more. Doing so will require a shift in thinking from selling products to dispensing advice, and that can be difficult for some FIs. It's worth the effort, though. These banking customers generally are young, earn more than those who don’t have college degrees or trade school credentials, own more financial products, and have brighter outlooks for long-term prosperity. They’re the customers banks and credit unions want.
Array, M&T Bank, MX, QCash Financial, Regions Bank, SavvyMoney
Interested In This Report
Plastic Surgery, Start-Ups, Motorcycles, Crypto, EVs: What’s Ahead for Specialist Lenders
During the pandemic, specialist fintech lending caused long faces at big banks by seizing share. Five percent of Gen Zers and Gen Xers took out loans for plastic or cosmetic surger...
Emergency Money: Why There’s a Flood of Small-Dollar Loans and Secret Accounts
Too-little-too-late early payday solutions and short-term, small-dollar loans, motivated by pressure around overdraft fees or charges for non-sufficient funds (NSFs), are outpacing...
Mortgage Pandemic or Just the Sniffles: Fast-Track Cures and Long-Haul Boosters
This report forecasts emerging variants in home lending, describes new hybrid (digital plus human) relationships, and prescribes digital-first options and tech-enabled remedies to ...