Digital Lending to Attract Millennials and Gen Z’s

For years community banks have tried to attract younger consumers to replace older customers whose deposits generally leave the bank when they pass away. Also, baby boomers and the silent generation born before 1959 tend to be deposit gatherers rather than borrowers.

During the pandemic in 2020 that continues on in 2022, consumer buying habits have changed as well. More purchases are being made online and companies like Amazon and Walmart have flourished. Paying for purchases when baby boomer bankers grew up were either on a lay-a-way plan at JC Penney or credit cards were used. Some merchants financed the sale so consumers in the 1970’s and 80’s could pay over time for their purchase.

As with many banking products providing a service that your customers want and need is imperative to survive. Evergreen credit cards that never seem to get paid off are somewhat out of favor with the younger generation. The Buy Now Pay Later business is expanding at warp speed and your customers love the simplicity of this relatively new service…unfortunately, banks are missing out on a big opportunity.

Bring in Digital Lending in 2022. Quilo has developed an easy to use yet sophisticated smartphone lending solution that enables your bank to participate in this prime lending business. Digital banking has been around for quite some time on the deposit side of the house but not lending…until now.

Take 45 minutes to see the demo of Quilo. You will be amazed what technology can do to attract younger consumers that are currently using Fintech companies for this service.

Consumer Lending Opportunity for Banks

Consumer lending has been a thing of the past for most community banks since credit cards took over unsecured small dollar lending in the 1980’s. Some banks try to compete with credit unions and auto companies for indirect car paper but that has diminished as well due to unprofitable low rates the competition is providing. Core processors have been slow to react to financial technology firms who are providing young consumers with products and services they want and use…digital lending.

Until now, community banks have been shut out of this market. Quilo is a digital lending tool that allows banks to make and underwrite the loans while allowing the smart phone app to fund, collect, and manage consumer loans profitably. Quilo provides instant access to loans of $250 or more through a virtual card on your customer’s phone. Consumers can also use Quilo to pay down or pay off high interest rate credit cards or replenish their checking account at your bank for recent debit card purchases.

Your bank has complete control over the credit risk. Maintaining minimum and average credit scores of the portfolio ensure that credit quality remains high. The Quilo scoring engine does a soft pull of the consumer’s credit bureau report to determine if a loan should be made and what amount. If the consumer qualifies and takes a “Quilo” the interest rate is calculated based on risk of loss, bank’s cost of funds and desired return, and processing costs. Typically the interest rate to the consumer will be between 8% and 12%. The term of each loan is determined by the consumer. The return to the bank is 5%-6%. A pretty good yield given today’s interest rate environment.

To set up a 45 minute demo of Quilo demo contact Strunk at or 800.728.3116.

Strunk at the WBA Lenders & Chief Credit Officers Conference

Last week the Western Bankers Association hosted its Lenders & Chief Credit Officers Conference, their first in-person event since early 2020. Strunk was excited to attend and to introduce Quilo, an instant installment loan solution directed at consumers.

The four day event was hosted at The Ritz-Carlton, Laguna Niguel and was packed full of content for bankers. The agenda included sessions on “Making and Sustaining an ‘All-Weather’ Credit Culture”, “Issues in Commercial Lending”, “Grow Loans and Protect Income Through Hedging” and a Legislative Update from Keven Gould, SVP – Director of Government Relations for the California Bankers Association.

Strunk’s CEO Dan Roderick was pleased to demo Quilo prior to the Interactive Discussion with Bank Chief Appraisers. Quilo is a fully turn-key FinTech consumer installment loan program that will allow you to tap into the EXPLOSIVE ‘buy-now-pay-later’ instant installment loan market to increase loan volume and margin.

Technology has changed the market for installment loans and Quilo can put community banks on the path to high loan growth and increased profitability. Quilo is a game changer. Utilizing the latest in technology, Quilo creates the opportunity to give consumers what they prefer.

Bankers were enthusiastic about the solution and we look forward to continued conversations with many of the conference attendees. If your bank is interested in growing your loan portfolio and improving your margin, let us show you how Quilo can make that happen.

Profitable Consumer Lending for Banks

Lay-a-way programs started in the 1930’s and became very popular with consumers in the 1970’s where a merchant would reserve an item for a consumer until a consumer completed payments for the item. This was a prevalent way to make purchases for Christmas presents. Then in the early 80’s, lay-a-way programs were replaced with credit cards. Community banks didn’t have a profitable way to compete. Now credit cards are being replaced with Buy Now Pay Later programs that flourished during the pandemic in 2020.

Except for the largest banks who offer credit cards, financial institutions have been left out of the installment lending business again just like 40 years ago. Bank’s core processors have been slow to adapt to the changing consumer purchasing landscape as millennials and Gen Z’s head to Fintech companies for financing.

Over ten years ago, Square produced a digital payments solution for small businesses that far exceeded any banking offer. Six years ago Quicken Loans became the first lender to perform electronic closings for home mortgages. Now Affirm, Klarna, Sezzle, Zip, Openpay and others have developed products that have kept the banks on the sidelines once again. When will banks have an opportunity to compete for consumer loans?

Strunk’s Quilo program provides instant access to consumer loans via mobile device that enables banks to compete in the changing world of consumer lending. Underwriting, funding, collections and reporting are all done through the Quilo solution and there is no hassle for the consumer or the bank. Controls are set up to meet the bank’s credit risk standards as well as the desired return. When was the last time your bank made a $600 loan profitably? Best guess is was at least four decades ago.

To see what you are missing out on contact Strunk at or 800.728.3116 for a 45 minute demo.

High Growth Installment Lending Solution

For the past 40 years banks have made it difficult for their customers to get a small dollar installment loan due to the unprofitable nature of doing so. Credit card company business has flourished since the late 1970’s and bankers have been left on the sidelines.

The old (and current) way of making consumer loans is expensive and tedious and bank core processors have been slow to develop lending solutions that make these small dollar loans easy to book and profitable at the same time. Some banks allow consumers to apply online but many still require their customers to fill out an application in person.

Historically, bankers confirm the information on the application, pull a credit bureau report, and underwrite the loan. If the customer still wants to borrow, loan documents are produced and signed, repayment source and schedule is prepared, and the new loan is funded on the bank’s lending platform.

For loans of less than $1,000 most bankers cringe at the thought of doing all of this work for the amount of interest they will earn. Some banks turn these customers away. Furthermore, the cost to put the installment loan on their core processor’s lending platform eats up most of the interest the bank would receive.

Quilo takes all of the hassle out of making these loans and it allows the consumer to have instant access to credit based on their borrowing capacity. The new way of lending is digital (smart phone) and it provides easy access to loans based on the bank’s underwriting criteria. Digital banking has been around on the deposit side for several years. Now you can offer digital banking on the lending side as well.

To see what you are missing out on contact Mike Sobba, President of Strunk at or 816-225-8793 for a 45 minute demo.

Quilo Gives Banks a Chance

Strunk has recently partnered with Quilo to provide community banks the opportunity to make small dollar installment loans profitably through your mobile banking app. The Buy Now Pay Later (BNPL) craze is here to stay and you may have recently seen where Amazon has teamed up with Affirm to provide this service. Are you going to let your customers borrow money from a FinTech?

Quilo is a fully integrated mobile banking solution that allows your customers to make purchases over $250 and pay for them over a time frame comfortable for them. What’s even better is your bank gets to make the loans profitably through our digital lending program.

Your customers can get pre approved so they know how much credit they have; they can use it a point of sale or for online purchases; they can use it to replenish their checking account at your bank for recent debit card purchases; and they can pay down or pay off other bank’s credit cards. Credit risk is completely controlled by you.

Underwriting, funding, collections and reporting is all handled inside the Quilo app. Once the program is set up it takes about 1.2 seconds for your customer to determine what they are eligible for. Each transaction is time stamped to ensure that your customer took the loan. All disclosures including adverse action are handled by Quilo.

Many bankers will remember the old lay-a-way programs that consumers use to enjoy in the 1970’s and 80’s. Quilo allows your customer to take home the goods and you make the loan.

To see what you are missing out on contact Strunk at or 800.728.3116 for a 45 minute demo.

Is your Financial Institution Ready for Digital Lending?

Digital banking has been around for about a decade as community banks and credit unions scrambled to offer consumers something big banks started in 2007. Mobile banking really started in Europe in the late 1990s and it took over ten years for it to become popular in the United States.

Mobile banking gives consumers 24/7 access to their deposit account. Most mobile apps allow for bill payments, remote deposits, fund transfers and some even allow person to person payments. Mobile apps have not provided any type of service on the lending side of the house until now.

The buy now pay over time solutions that many consumers are using started in Europe several years ago and in the past year they have become popular in the U.S. Just like mobile banking, the financial institutions here have lagged behind the rest of the world when it comes to digital technology solutions for consumers.

The Quilo mobile app provides instant access to small dollar (over $250) consumer loans that can be used at 1) POS or for online purchases; 2) to pay down or pay off credit card debt; or 3) to replenish a checking account for recent debit card transactions. The loans follow strict credit underwriting by each institution. Funding, collections and reporting is handled by the Quilo app.

Strunk has partnered with Quilo to provide a turn-key solution that will meet consumer demands by providing small dollar lending profitably. Quilo will substantially increase loans, net interest margin and interest income.

For a quick demo of Quilo contact Strunk at or 800.728.3116.

Banks Must Meet Consumer Demand. Don’t Let Fintechs Steal Away your Account Holders!

Consumer purchasing behavior changed in 2020 with the pandemic and retail shops closed in an attempt to stop the spread of the virus. Credit card transactions were up in 2020 compared to 2019 but credit card receivables were down substantially during the same time period. What happened?

People of all ages have aligned themselves with the buy now pay over time business that has finally come to the United States. Many younger consumers like the idea of buying a major item and paying it off rather than putting the purchase on an evergreen credit card that never seems to go away. Now people of all ages are using the service and the proliferation of this business is something bankers need to pay attention to.

In 2010 Square began offering bank’s small businesses a solution to run their payments solution without a banking relationship. Mobile card readers allow small business to receive payments for goods purchased. Why didn’t banks offer this to their customers? Why did a Fintech steal this business from banks?

Just six years ago a company called Quicken Loans started a mobile app for mortgage loans called Rocket Mortgage. They were the first Fintech to underwrite, fund and close mortgage loans in all 50 states. Now they are the largest home lender in the US. Why did a Fintech take this business away from banks?

Now companies like Venmo, PayPal, Sezzle, Affirm, Klarna, SoFi, Open Pay and Quad Pay are once again taking customers away from banks. They offer buy now pay over time for purchases made through merchants. Your bank’s customers are making their monthly payments from their checking account at your bank. Now, many of these companies are offering high interest checking accounts as well. Why did the Fintechs take this business away from banks?

Strunk has a turn-key technology solution that will meet customer demands by providing small dollar lending profitably. For a quick demo of Quilo, contact Strunk at or 800.728.3116.

Protect your Customers from FinTechs?

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

Putting the CFI’s Low Cost of Funds to Work

Financial institutions across the country are enjoying a low cost of funds and many CFIs are looking for ways to deploy deposits profitably. As the Federal Reserve continues a pattern of low interest rates and with the high level of liquidity on the bank’s balance sheets – what can you do to increase net interest margin?

Community banks and credit unions have been sitting on the sidelines as financial technology firms have taken over the buy now pay over time business that proliferated during the COVID-19 pandemic. Consumer online purchases increased dramatically in 2020 since many retail businesses encouraged them or consumers stayed home.

Large retailers have adapted their payment processes for millennials and Gen Z’s who aren’t keen on using credit cards by allowing their customers to make fixed monthly payments over a 3-24 month period. Transparency, no hidden fees and the ability to make predictable monthly payments are reasons consumers like these new programs. Until now banks have had no way to compete for these profitable relationships.

Strunk is thrilled that we partnered with Quilo to bring to market the ability for banks to make these loans that their customers are currently getting elsewhere. Our turnkey, smart phone application is easy to use for online or in store purchases. Likewise, consumers can pay off high interest rate credit cards with the Quilo program.

If your financial institution has a low net interest margin, low cost of funds, and a desire to see what your customers are already using in the digital lending space give us a call to let us show you how our program works. The low touch, high yield lending platform is innovative and easy to manage.