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Why Millennials Are Most Likely To Lend Money

Vouch, the credit-focused social network, said Wednesday (Aug. 12) that an online study it commissioned has found that a majority of Americans “would gladly” lend money to friends and family.

In a release detailing the results of a June 2015 survey of more than 2,000 adults, Vouch said that roughly three in four citizens responded that they would lend money. Broken down by demographics, Vouch found that millennials, ranging in age from 18 to 34 years old, “lead the pack” of those inclined to give, with 84 percent stating they would indeed open their wallets.

Digging into the data, Vouch found that millennials are more open to both borrowing from and lending to friends and family, regardless of the reason for the loan. The demographic is more likely than other age groups to lend, at comparative percentages of 51 percent for those aged 35 to 44 years old, 47 percent from the age block of 45 to 54 years old, the same percentage for those 55 to 64 and 44 percent of adults aged 65 and above.

In one example of stark contrast, 34 percent of millennials said they would consider lending money to a friend for the express purpose of education, far outstripping the 3 percent of adults over the age of 65 who would be similarly inclined.

Vouch also found what it termed a “general societal shift towards more open lending” across all age ranges, with 80 percent of adults stating that they would loan money to family members tied to unexpected costs and 76 percent saying they would do the same for friends.

In reference to gender differences, Vouch said men are more disposed to lend a “larger amount” to family members than women; 53 percent of males said they would be willing to lend at least $1,000 versus 36 percent of women. Conversely, women seem to be more inclined to help with what Vouch called “frequent smaller money problems,” with 66 percent of females saying they would loan less than $500 to a friend, compared to 50 percent of men who shared that notion.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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