Achieving complete financial inclusion won’t be quick or simple since millions of Americans still struggle to access standard lending sources. However, with an estimated 307 million smartphone users in the U.S., the development of mobile technology has opened up chances to increase disadvantaged families’ access to loans. Sezzle CEO Charlie Youakim talks about credit insecurity.
FinTech companies are already utilizing mobile technology to increase credit availability and accessibility, assisting consumers who would otherwise be compelled to turn to payday loans and other pricey lending options. FinTechs are also enabling customers to strengthen their credit histories, expanding the range of services for which they are eligible.
An important area of concern for FinTechs working to advance financial inclusion is the issue of the significance of low credit ratings.
Poor credit ratings have a noticeable effect on credit availability, especially for younger customers. For instance, millennials’ average credit score was over 30 points below the national average as recently as Q2 2022, which restricted their ability to get approved for conventional lending choices. According to statistics, 36% of millennials recently rejected credit cards, compared to 25% of Americans overall.
