Design an Online Lending Product for Millennials

Generation X or ‘millennials’ are slowly emerging as the highest spenders across a variety of consumer products. Taking over the reins of the world from the frailing baby boomers, the millennials are poised to constitute 75% of the workforce by 2025. But designing an online lending product specifically for them is not short of unique challenges, to say the least.

Who are the ‘Millennials’?

This demographic cohort represents anyone born in the years between 1981-1996. So the oldest millennial is all set to hit 40 next year. Millennials are entering the peak earning years of their life and are responsible for 50% of the purchase decisions made every year. 

An interesting fact: 

“Indian Millennials, especially right now, can afford to buy their first homes, they just choose not to.

Things to keep in mind while designing for ‘Millennials’?

Please note, these insights have been derived from the interview done by, a UX UI Design Company as a part of their research

1. Millennials like to spend on experiences, not assets: Millennials like to live in the moment. There is an increasing trend in photos of travel, fine dining, shopping sprees, and other such lifestyle expenses surfacing on social media which is an important indicator of millennial buying behavior. In the interview by Onething design, answers revealed that the biggest expenditure most millennials save up for is an international vacation. But, paying for these extravagant lifestyle expenses doesn’t always come easy. Saving up for a fancy vacation takes work and meticulous planning. Many millennials put in a lot of time and discipline for what might seem like a short-term reward. So, while designing the online lending app, think of how you can maximize the savings for Millennials.

2. Millennials are discount-driven: Brand loyalty is a thing of the past. Millennials scope the entire shopping arena, both online and offline, in the hopes of finding discounts and package deals. Millennials prepone or postpone these expenses on the basis of the ‘deals’ or ‘rewards’ they get in this exercise. So, you should try and design your digital lending product in a manner that can be tailored to suit the individual’s unique spending preferences.

3. Millennials love ethical and sustainable brands: Regardless of how you twist it, banks aren’t held in the highest of regards by Millennials. A certain degree of skepticism and suspicion is underlined in every interaction with banks and financial institutions. In addition, millennials are the digital natives of the human race. They are highly tech-savvy and connected to the rest of the world every second of their lives. So, if a financial institution has a history of wrongdoing, millennials are likely to take their business elsewhere. However,  millennials don’t necessarily think of big corporations as evil; if a multinational corporation, such as a bank, holds a reputation for dealing with their customers in an ethical way, millennials have no problem associating with it. So, think about highlighting the aspects that can drive trust for Millenials.

Conclusion: Online money lending apps and smart online payment technologies have already captured a significant portion of the Indian diaspora. In order to appeal to discerning millennials, virtual credit card apps will have to accommodate their unique preferences and spending habits. Young people today have more smarts and buying power than we would like to give them credit for. As product designers, we should explore UX search and find personalized solutions