Companies today face a unique challenge: engaging and marketing to their customers across more generations than ever before. This is because older generations are living and working longer and younger generations have more spending power at an earlier age. In fact, Americans 50 years and older were responsible for $7.6 trillion in economic activity in 2015. And Gen Z (those born after 1997) already reportedly commands $44 billion in purchasing power, according to an Ernst & Young report. As a result, companies must focus their marketing efforts across at least four generations at any given time (Boomers, Gen X, Gen Y, and the up-and-comers, Gen Z).
The long-running narrative on Millennials has been that they are living in their parent’s basements, too crippled by debt and low-paying jobs to afford to live on their own. Quickly, though, that story is changing. In fact, Millennials have had the highest share of home buying for the past 5 years, and in 2017 accounted for 36% of purchases, according to the National Association of Realtors (NAR).
The current expected credit loss standard (CECL) will require financial institutions book loan loss allowances for the life of the loan at the time of origination, and—if that changes over time—an institution’s income can take a hit.
To accurately predict loss allowance, especially for loans with a longer lifecycle, banks and credit unions will need sufficient data for CECL implementation.