Affirm is strengthening its collaboration with New York Life Insurance, allowing the insurer to buy up to $750 million in Affirm's installment loans through 2026. This deal builds on their previous partnership and reflects a trend of traditional financial firms increasing their investments in fintech and consumer lending.

Banks are missing an opportunity to enhance customer loyalty and revenue by not integrating credit score improvement features into their checking accounts. Research shows that Gen Z and Millennials, particularly those with subprime or near-prime credit scores, are eager for tools that help them build credit through their banking relationships. By offering such services, banks could potentially recapture over $110 billion in deposits and drive additional interchange fees.