Max Levchin can look back on long list of achievement, not least of which is his role in co-founding PayPal. At DLD15 the 39-year old internet entrepreneur talked about one of his latest projects: Affirm.
Affirm is re-imagining financial services. As Levchin laid out in his talk (which he began with a clip from South Park where Stanley goes to deposit money his grandmother gave him at the bank), Millennials don’t trust bank. They do not buy into the idea of “too big to innovate”, however. They think banks as they currently exist need to fall and then be re-created.
Many Millennials living in America today would rather go to see a dentist than visit a bank. The top our leading banks in the US are also among the ten least loved banks among Millennials. Trust in banks has been eroded over the last ten years or so - and today 63 percent of American Millennials of not have credit cards.
While this young generation may not trust banks, however, they do need to finance their lives. Levchin hopes that Affirm is the method they will choose to do this. The San Francisco-based company is trying to become the “honest financing option for online retail”. Loans given begin and end and clients can receive better rates by supplying more data.
Ultimately, Affirm hopes to gain the trust lost by leading American banks among Millennials. At DLD15, Levchin announced that student loans have been launched by the company.