NZ: Fintech platform catered to the “Bank of Mum and Dad” set to launch in New Zealand

Fintech platform Credi has announced that it will expand its operations to New Zealand. The platform which first launched in Australia in April enables lending between family members.

By formalizing the lending that occurs between family members, the platform aims to set out an agreement with scheduled repayments agreed upon by both parties. By setting these agreements, the platform aims to ensure that relationships remain intact when family members lend out to one another and to prevent disputes from arising.

Credi has already had some early success in Australia, facilitating around $35 million of loans since its launch, driven by the increasing importance of the Bank of Mum and Dad due to housing affordability issues. There is potential to achieve success in the New Zealand market, particularly in the personal lending space.

RFi Group data from August 2017 shows that 21% of New Zealand Millennials with a personal loan considered taking a loan from friends/ family before they took out their personal loan.

Data: RFi Group New Zealand Personal Loans Council, August 2017

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