Next generation of checking accounts to be driven by consumer-permissioned data

Bloom Credit, in collaboration with consulting firm Cornerstone Advisors, today announced a commissioned study of consumer finance and credit builder products. Credit Score Management: The $110 Billion Deposit and Payments Magnet finds that the number one feature Millennial and GenZ bank customers want from their checking accounts is a built-in ability to report consumer-permissioned data (CPD) in the form of regular bill payment histories to build their credit profiles.

Amid high interest rates and increasing inflation, affordable credit remains out of reach for tens of millions of Americans. More than 100 million U.S. consumers are unable to secure credit at mainstream rates either because they are credit invisible, unscoreable by conventional credit scores, or have a subprime or below credit score according to Oliver Wyman. Young people, immigrants and minorities are disproportionately affected in both cases.

Against this backdrop, the report’s survey of Americans with a subprime (580 to 619), near-prime (620 to 670) or no credit score conducted in Q2 this year, reveals:

• Gen Zers and Millennials rank the ability to build credit with regular bill payments the most desired feature, followed by automated health expense reimbursements, rewards for investing, and a paid bundle of subscription services
• 70% said if the financial institution that turned them down for a loan or credit card had offered a free service to help them build their credit, they would have used it
• 46% of Gen Zers and 48% of millennials currently use credit building tools
• 46% of Gen Zers and 57% of millennials have been denied a loan since the pandemic

“The results of this data are clear. People want a new way of establishing their creditworthiness that doesn’t require taking on debt. They want credit for positive financial behavior they’re already demonstrating and if it’s from their checking account, even better,” said Christian Widhalm, CEO, Bloom Credit.

Based on data from the report, Cornerstone Advisors recommends that financial institutions provide a built-in ability for consumers to report their bill payment histories directly into checking accounts rather than treating credit building as a casual add-on.

“There is a perception that checking accounts are dying. This study shows that especially GenZ and Millennial consumers want a checking account that is doing more for them. As financial institutions allow customers to report bill payment history from their checking accounts, they can recover lost deposits while also empowering consumers,” said Ron Shevlin, Chief Research Officer, Cornerstone Advisors.

To access a copy of the full report, click here.

About Bloom Credit

Bloom Credit is a financial data infrastructure company. Bloom’s API platform, strategic relationships and critical innovations, such as Bloom+ for consumer-permissioned data (CPD), enable access to validated financial data and reporting in real-time. The company's fintech solutions empower organizations to create, launch and grow new classes of credit products, increase business relevance and better address their consumers' needs. For its accomplishments in transforming the credit data ecosystem, Bloom Credit has earned Finovate's Best of Show (2024) and Tearsheet's Data Innovation Award (2024) and has been selected this year as a finalist for Money20/20’s Banking innovation award, Finovate’s Excellence in Financial Inclusion and for CU Times Innovation and Executive Leadership Luminaries Awards. The company is backed by leading venture investors including Crosslink Capital, Allegis Capital, and Commerce Ventures. To learn more, visit BloomCredit.io.

About Cornerstone Advisors

For over 20 years, Cornerstone Advisors has delivered gritty insights, bold strategies, and data-driven solutions to build smarter banks, credit unions, and fintechs. From technology system selection and implementation to contract negotiations, vendor management, performance improvement programs, strategic planning, merger integration, and enterprise program management, Cornerstone combines its expertise with research and proprietary data to help financial institutions thrive in today’s challenging environment.

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"People want a new way of establishing their creditwort hiness that doesn’t require taking on debt,"Christian Widhalm, CEO, Bloom Credit.