For the past 40 years community financial institutions (CFIs) have shied away from making small dollar installment loans to consumers due to the unprofitable nature of the loans. Underwriting costs, funding, collections, and managing the loans generally exceed the interest received from the customer. Banking technology has been slow to adapt to the wants and needs of consumers. Now, FinTech companies are taking the business away from our industry.
Making auto loans was something most financial institutions did until the car manufacturers started offering 0% interest loans. Indirect lending took off as well with CFIs working with the local car dealer to finance auto purchases. That too has slowed as competition from credit unions and captives have offered lower rates to consumers. What can a CFI do with all of the low cost deposits they have received since March 2020?
Quilo is a Strunk partner and the solution provides instant access to small dollar installment loans to consumers through a smart phone app. The white labeled Quilo app underwrites, approves, disperses funds, collects and reports the loans to the financial institution. Your CFI funds each loan and the underwriting criteria are completely controlled by each financial institution. All consumer disclosures are handled through the app but they are the same as you use today.
There is a unique opportunity to get back into the installment lending business as the buy now pay over time business proliferates. The high yield low touch Quilo platform is a turnkey solution that requires very little time or money on your CFI’s part. Let’s stop the FinTechs from taking our loan and deposit customers.
For a quick 45 minute demo of Quilo, contact Strunk at firstname.lastname@example.org.