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The defi Team defi INSIGHT, Thought Leadership

millennial banking trends

The millions of people born in the US sometime between the early 1980s and mid-1990s now outnumber baby boomers. For banks, this is a massive opportunity. However, they need to understand the group’s mindset and adapt their lending technology to take advantage of millennial banking trends.

Adapting to Millennial Banking Trends 

Many studies have been published by industry groups, analysts, and banking institutions. In this blog, we’ve distilled some of the key points that characterize millennial banking trends and how they affect ending practices.

Millennial Banking Trends Guide Lending Practices

What expectations do millennials have?  They are mobile, with devices almost constantly at hand. That means they’re communicating and conducting transactions wherever and whenever. They:


  • Value convenience, mobile support, and ease of use in interacting with banks;
  • Expect instantaneous interactions—Uber, restaurant reservations,;
  • Are likely to abandon mobile banking activities when they take too long;
  • Use mobile banking applications in far greater numbers than previous generations; and
  • Are receptive to communications received via their preferred channels—mobile apps, texting, and websites.

Overall, millennials want to conduct banking activities with minimal fuss.

Keep an Eye on Neobanks 

In response to the opportunity presented by millennial banking trends, fintech entrepreneurs are establishing banking services without the need for brick and mortar branches. These “neobanks” have strong millennial appeal, employing the latest technologies for rapid loan approvals and funding, often at better rates, since cloud-based lending reduces overhead. Established banking institutions need to see neobanks as a serious threat.

Millennial Banking Trends and the Loan Origination Process

How should the ideal lending process capture the millennial lending opportunity? Let’s examine the loan origination process and note what millennials expect.

Mobile or Online Loan Applications Need to Be Hassle-Free

Millennials expect to conduct business anywhere, anytime. Mobile and online applications need to be hassle-free, tailored to make the process as effortless as possible. Banks can do this by:


  • Making it easy to enter applicant information and attributes. Use drop-downs, auto-fill, and conditional fields (based on information already entered) to streamline data entry;
  • Use masking, validation rules, and minimum/maximum values to help ensure data is entered accurately;
  • Providing image capture on mobile devices for driver’s licenses, pay stubs, address verifications, and any other required documentation;
  • Use optical character recognition (OCR) to automatically extract data from captured documents;
  • Integrate with external data sources to quickly confirm the accuracy and validity of applicant data; and
  • Thoroughly test and refine the user experience by simulating the process on popular mobile devices to ensure a streamlined process.

A well-designed mobile loan application process is the beginning of a positive lending experience. It captures required information quickly and lays the foundation for rapid decisioning. 

Quick Decisioning Requires Automation 

Banks can meet millennial expectations of instantaneous interactions with automation and other fintech that can return lending decisions within seconds of submission. Banks can do this by:


These technologies are rendering more and more decisions in a fraction of the time as human underwriters, who can spend more time on exceptions. If they’re not already doing so, banks need to aggressively incorporate this fintech.

Mobile Confirmation and Communications 

A mobile loan origination process that is decisioned in seconds and quickly returns a deal will beat any paper-intensive loan origination process offered by banks. Well-designed workflows can handle:


  • Creation of loan confirmation documents;
  • Packaging them as PDFs;
  • Including e-signature capabilities;
  • Emailing it all; and
  • Text notifications for applicants.

Modern LOS Capabilities Meet Millennial Banking 

Given demographic changes, banks need to ensure that their loan processes are designed to meet expectations. If your current loan origination software can’t manage the mobile experience from application submission to loan confirmation, it’s a good time to consider a modern loan origination solution with the latest fintech to streamline loan applications and decisions.  



Getting Started

defi SOLUTIONS develops, delivers and supports cloud-based loan origination solutions. defi LOS offers mobile loan applications and the latest fintech. Take the first step toward a larger share of the millennial lending opportunity by contacting our team today or registering for a demo of defi LOS.


Get in touch with us today and get a demo!


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