Strunk

Quilo Gives Banks a Chance

September 1, 2021/in Banks, Credit Unions, Financial Services, Markets, Quilo/by Mike Sobba

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 info@strunkaccess.com or 800.728.3116 for a 45 minute demo.

Is your Financial Institution Ready for Digital Lending?

August 4, 2021/in Banks, Credit Unions, Financial Services, Markets, Quilo, Sales/by Mike Sobba

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 info@strunkaccess.com or 800.728.3116.

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

July 7, 2021/in Banks, Credit Unions, Financial Services, Markets, Quilo, Sales/by Mike Sobba

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 info@strunkaccess.com or 800.728.3116.

Protect your Customers from FinTechs?

June 16, 2021/in Banks, Credit Unions, Financial Services, Markets, Quilo/by Mike Sobba

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

May 12, 2021/in Banks, Credit Unions, Financial Services, Markets, Quilo, Sales/by Mike Sobba

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.