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 info@strunkaccess.com.

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.