Millennials are known for their love of convenience, and a new Ireland-based Facebook loan program, in progress with 16 credit unions, is being met with approval by the demographic. The loan product targets younger borrowers in their 20s and 30s through Facebook offering a “lightning fast decision.” The application process reportedly takes less than 30 seconds, and a hasty response is promised.
Close to half of the tech-savvy applicants who have taken out one a Fast-Track Facebook Loan’s in Ireland had never borrowed from a credit union before. Participating Irish credit unions claim that 10 percent of their total new-loan volume is stemming from these loans, and they think they can kick that to more than 20 percent in the next 24 months.
The idea to offer digital loans through Facebook came from the Solutions Centre, a credit union think tank based in Ireland. It was piloted successfully earlier this year before being rolled out to the CUs currently offering the loan option.
Kevin Johnson, a spokesperson with Solutions Centre, said CUs taking part in the new Facebook lending program have had to make some radical changes to their own rules. Read more at The Financial Brand.