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
1. Credit Building for Youth - Financial institutions could create their own credit-building tools to help young customers establish credit history.
2. Automated Credit-building - Using automated tools like FreeKick could make credit-building less intimidating and more accessible for young adults.
3. Alternative Credit Scores - As non-traditional credit-building tools emerge, alternative credit scores could become more widely accepted in the future.
Industry Implications
1. Banking - Banks could develop platforms similar to FreeKick to serve the needs of young consumers and gain a competitive edge.
2. Fintech - Fintech startups could offer credit-building tools to help young consumers and gain a foothold in the industry.
3. Credit Reporting - Credit reporting agencies could explore how to incorporate alternative credit scores into their models to serve a wider range of consumers.