Millennials are the ones who request loans the most in Mexico

Los millennials, nacidos entre 1981 y 1996, representan actualmente una fuerza económica clave a nivel mundial. Con más de 1,800 million people, equivalent to 23% of the global population, esta generación vive en un entorno predominantemente digital. Su comportamiento financiero refleja una transición hacia soluciones tecnológicas y servicios adaptados a sus necesidades específicas. Sin embargo, la falta de un traditional credit history ha limitado su acceso a créditos, dificultando la compra de viviendas, automóviles o la realización de inversiones.

In 2024, 52% of mortgage loan applications at Citibanamex came from millennials, highlighting their interest in accessing home financing. This behavior reflects their ability to adapt to innovative financial technologies, such as the use of alternative data for credit scoring.

Who are millennials and why do they stand out in the financial sector?

Millennials make up a generation that has grown up in a digital world. Currently, they represent 23% of the global population and, in Mexico, they are in the range of 27 to 43 years old, which places them at a key stage for making important financial decisions, such as buying a house or investing in their future.

Some distinctive characteristics of this generation are:

• Preference for digital: They carry out transactions mainly through applications and fintech platforms.
• Demand for personalized experience: They value financial products adapted to their specific needs and fast response times.
• Limited savings: According to Deloitte, although they are aware of the importance of saving, their income is usually insufficient to build a solid fund.

Growth in credit applications in Mexico

Millennials have shown growing interest in various financial products, standing out in areas such as:

1. mortgage loans
   Según Citibanamex:
   • In 2024, 52% of mortgage loan applications came from millennials.
   • Average loan amounts are around 1.9 million pesos, reflecting an interest in starting households or investing in assets.
   • Millennial participation in this segment has grown more than 50% in the last 5 years, surpassing earlier generations such as Gen X, which now accounts for only 30% of applications.
2. Credit history inquiries
   According to data from Círculo de Crédito, millennials made close to 75 million credit history inquiries in 2023, an increase of 93% compared to 2020.
3. Preference for digital financial products The use of digital products among millennials and Gen X grew more than 200% in 2022, according to data from Círculo de Crédito, showing their inclination toward technological tools and innovative financial solutions.

The role of alternative data in access to credit

One of the main challenges for millennials is the lack of a traditional credit history, which often makes access to financing difficult or results in high interest rates. However, alternative data is transforming this reality.

This data includes information such as:

• Recurring payments (services, subscriptions).
• Activity on digital platforms.
• Behavior in financial and consumer applications.

Thanks to the use of artificial intelligence and machine learning, financial institutions can more accurately assess the payment capacity of millennials, promoting financial inclusion and improving approval rates.

Female financial inclusion

Another relevant data point is the increase in credit applications from millennial women. According to Citibanamex:

• 40% of mortgage loan applications in 2024 came from women.
• In the last five years, female applications have grown from 33% to 37% of the total, reflecting a trend towards equity in financial access.

Benefits of using alternative data for millennials

• Greater financial inclusion
  Alternative data makes it possible to extend credit to people without a traditional credit history, opening opportunities for those who were previously excluded from the financial system.
• More accurate assessments
  Tools like those used by fintechs analyze more than 1,500 behavioral data points to create detailed credit profiles, increasing the approval rate by 30% and reducing default risk.
• Customer-centric experience
  Millennials value fast, personalized financial solutions, and alternative data makes it possible to create products tailored to their specific needs.

Millennials not only lead credit applications in Mexico, but they are also transforming the way financial institutions interact with their customers. The use of alternative data is key to including this generation in the financial system, granting them access to products adapted to their needs and strengthening their confidence in digital tools.

As millennials continue to consolidate their purchasing power, institutions that adopt these technologies will be better positioned to meet their demands and capitalize on the growth of this generational segment.

At Finvero, we transform the way credit is evaluated with our platform powered by AI and Alternative Data, designed to cover the entire credit lifecycle.

At Finvero, we transform the way credit is evaluated with our platform powered by AI and Alternative Data, designed to cover the entire credit lifecycle.

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