Recognizing the age-old dlemma of "it's difficult to find a job without experience and you can’t get experience without a job," the Texas-based Austin Capital Bank has launched a special credit-building tool for Gen Z consumers. Named FreeKick, the platform is available in 48 states.
Geared toward youth between the ages of 14 and 25, the process of credit-building "happens almost automatically from the customer's point of view." Parents open a savings account and make a deposit. A $600 credit-builder loan is taken out and paid-back over the course of an year. At the end of 12 months, the deposit is back in the account and the individual has a year's worth of credit history. Austin Capital Bank's credit-building tool will be useful to many.
Gen Z-Targeted Credit-Building Tools
Austin Capital Bank Launches the Freekck Credit Builder
Trend Themes
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Credit Building for Youth — Financial institutions could create their own credit-building tools to help young customers establish credit history.
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Automated Credit-building — Using automated tools like FreeKick could make credit-building less intimidating and more accessible for young adults.
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Alternative Credit Scores — As non-traditional credit-building tools emerge, alternative credit scores could become more widely accepted in the future.
Industry Implications
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Banking — Banks could develop platforms similar to FreeKick to serve the needs of young consumers and gain a competitive edge.
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Fintech — Fintech startups could offer credit-building tools to help young consumers and gain a foothold in the industry.
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Credit Reporting — Credit reporting agencies could explore how to incorporate alternative credit scores into their models to serve a wider range of consumers.