By Dimitris Anagnostopoulos, Chief Risk Officer at Snappi

About 25 years ago, while still living at my parents’ house, I decided to buy my first car to gain independence without relying on the family vehicle. I had saved a significant amount for the down payment and hoped to rely on bank financing for the remainder. After choosing the car of my preference, I applied for a consumer loan at the dealership. The seller assured me that, given the size of the down payment, there would be no issue securing the financing.

Unfortunately, the bank’s response was clear: “Due to insufficient credit history, we will proceed with the financing only if you provide a guarantor.” After a lot of back-and-forth, I returned to the dealership with a guarantor, submitted additional documents, and finally got the loan. 

Fast forward 25 years, much has evolved in the banking sector. However, the challenge of “insufficient credit history” remains a significant hurdle for young people seeking financial independence. This challenge still remains a barrier for young people who are “unknown” to the banking system and therefore of “higher credit risk”.

This is exactly the challenge Snappi aims to address. By leveraging new technologies and modern machine learning evaluation techniques, Snappi provides young people with the tools to build a positive credit history starting from small loans, like BNPL (Buy Now, Pay Later) services.

Why Credit History Matters

A good credit history is the key to accessing higher-value loans in the future. For instance, young adults who build their credit profile through small, well-managed loans today will have a much easier time in securing larger loans for a car or other needs in just a few years.

Snappi offers young customers a structured way to:

• Build their credit history early, enabling them to access larger loans without the need for a guarantor or excessive down payments.
• Get accustomed to using credit products safely, as Snappi provides manageable loan amounts with short repayment durations.
• Avoid indirect costs like annual fees and interest, as Snappi’s loans are interest-free.
• Maintain liquidity for unforeseen expenses while continuing purchases seamlessly through digital channels.

Unlike traditional revolving credit tools, Snappi evaluates a customer’s financial capacity at the moment of the funding request. This ensures that credit is responsibly granted, protecting customers from overborrowing, especially during periods of financial difficulty.

Snappi’s Vision for Empowering Young People
As the 1st Greek neobank licensed by the European Central Bank, Snappi is committed to financial inclusion and literacy. By helping young people build a strong credit history early on, Snappi will empower them to become financially independent and better prepared for future financial decisions.

For young people, this means not only accessing the banking system but also creating a financial foundation that opens doors to their dreams—whether it’s a car, a home, or other life milestones. Snappi cares about the financial future of young people and is here to make that journey easier.