BPCE wants to democratize student loans

COPD Most recently announced its ambition to democratize student loans by offering funding exempt from personal security and without any condition of resources. The French bank is thus taking a little more steps towards inclusion, but is also looking forward to its new offer to meet the direct competition of the Agricultural credit on this subject.

FACTS

• The new student loan offer put forward today by the PPCE Group will be distributed by its regional banks of Banque Populaire and Caisse d'Epargne.

• It is presented as a student loan solution without personal security or resource requirements. It is aimed particularly at students between the ages of 18 and 27 who are preparing a French higher education competition or diploma. It covers financing between EUR 1 000 and EUR 20 000 for a repayment period between 2 and 10 years. The offers also include the possibility of taking advantage of a partial or total delay for a period of 24 to 60 months.

• BPCE points out that these new funding offers make it possible to finance studies but also costs related to student life such as expenses dedicated to housing, the purchase of computer equipment or even the making of a stay abroad.

ISSUES

• Responding to competition : The launch of this new offer by the BPCE group comes just after the official presentation of the new package of services offered by Crédit Agricole to young people. Named "It's square.This new offer aims to accompany its target largely around financial services, and for this purpose includes the "Student Loan Without Your Parents" allows young people to finance their higher education without the need for parental security.

• Renewing its customer base : The objective of the BPCE group is to accompany more than 50,000 students in France in 2025, with an envelope set at 90 million euros, via loans granted with or without bail. This targeting allows the bank to capture customers with high potential in the future, by retaining them at the time of their studies.

PERSPECTIVE

• Recent developments in the credit market have been marked by regulatory changes affecting BNPL players. BNPL's offerings were initially presented as revolutionary, capable of democratizing financing solutions without representing a significant risk to end customers. But they eventually proved to represent a risk of overindebtedness and today face the hardening of the Regulation concerning them. In this context, the BNPL Accused Today a decline in usage in France.

• This has contributed to the emergence of a strong trend for credit players in general to demonstrate their responsible commitment and ambition to offer more social and even solidarity-based offers. It is in this context that new student credits from BPCE and Crédit Agricole are now proposed.

• But this fundamental trend regarding the commitment of credit players is also being felt internationally. Most recently, it was also the British bank Natwest that proposed a new mortgage formula incorporating the possibility for borrowers to use the solidarity of other members of their families when needed.

Traduit automatiquement via Libretranslate / Automatically translated via Libretranslate