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Formalising the bank of Mum and Dad with Credi – Kaplan feature

formalising the bank of mum and dad

Kaplan Professional is a leading Australian education and training provider in Financial and Real Estate Services. Kaplan’s recent article on formalising the bank of mum and dad highlights statistics on informal lending between friends and family. This article further highlights the solution to informal lending, being loan documentation and management through platforms such as Credi.

Their recent article on ‘the bank of mum and dad’ and relationship lending highlights various statistics on informal lending between friends and family. It further highlights a solution to informal lending, being loan documentation and management through platforms such as Credi.

‘The bank of mum and dad’, is one of Australia’s largest informal loan providers each month accumulating billions of dollars of transactions. However, for the financial services industry, it remains a largely under utilised resource.

A Commonwealth Bank study completed in 2012, highlighted that “Australians borrow more than $1.6 billion per month from their family and friends”.

A survey by ANZ bank in 2012 also revealed that 23.5% of Australian’s owed family and friends and a mere 5.1% had a personal loan from a bank.

While there are advantages to borrowing from our ‘nearest and dearest’, such as lower interest, the emotional effects can be significant. The informality of borrowing from friends and family can potentially negatively affect or ruin a relationship.

That’s where ‘software as a service’ or SaaS comes in. Platform’s such as Credi, have emerged worldwide in the hopes of helping people semi-formalise the lending and borrowing process. Not only do these platforms help protect relationships when lending money, they also aid in formalising and documenting the process, along with financial educate children on managing a loan.

Read the article in full here

Credit: Kaplan Professional

Source: ontrack.mykaplan.edu.au

 

 

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