Rise of Credi to Become ‘Fifth Major Bank’

KEY TAKEAWAYS:

• Studies reveal the direct participation of parents to first-time homeowners.
• A glimpse into the future of online platforms simplifying the loan process and the Parent to Child products.
• The budding growth of the so-called advanced inheritance.

“In 2018, a new player will emerge and turn the big four banks into the big five, I’m talking about the bank of Mum and Dad” stated by Starr Partner’s CEO, Douglas Driscoll. This comment originated from the most recent study determining the website Mozo’s discovery of $65.3 billion amounting to parents lending out to children in order to aid them in purchasing real estate properties. The profit end of Parent to Child loan products as analysed by Mr Driscoll explains further the imminent possibility of an addition to the “Big 4” banks in the country.

The surges in the market’s cost dramatically influence the labelling of the aspiring homeowners thus ending up tagged bright red as high-risk borrowers for lending companies. In this cause and effect process leading to children gaining aid from the parents. Mr Driscoll also believes that some parents have a realisation of giving such support at the right time of urgency rather than letting their children wait for inheritance.

Credi, a FinTech business, is notably one of the soaring platforms that allow friends, family and third parties to arrange and transact. As an addition to the Credi’s advisory board, Andrew Chick, the former CEO of the Australian coat of Arm of the Royal Bank of Scotland, has been appointed.

Recalling in 2014 denotes Parent to Child (P2C) loan product initially offered by the credit specialists La Trobe Financial. They created the Parent to Child (P2C) concept of parents choosing the right amount to loan, providing interest rate, therefore, depositing their investment to The La Trobe Financial Australian Credit Fund hence allowing the child return the money affordably as the parents gain an invested monthly profit as well.

About Credi Pty Ltd

If you’ve ever loaned your children money you are officially a branch manager of “The Bank of Mum and Dad”. You are also a part of one of the fast-growing sectors of the Australian economy. Credi.com was born out of the pressing need to document loans between family members, friends and businesses. It removes the stress, the embarrassment and the risk of legal action, formalising a loan within minutes and without a scrap of costly, time-consuming paperwork.

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