Nearly 70% of consumers currently use Buy Now, Pay Later (BNPL) services and the number is even higher for millennials and Gen Z’s. Community banks have battled for years to try to provide online banking, mobile banking and other services to keep and attract young customers when they leave for college and don’t come back home.

Now Fintech companies are providing services that your customers are using and they are literally taking consumers away from community banks right before banker’s eyes. When was the last time you checked on debits to your customer’s accounts going to Affirm, Klarna, Open Pay, Pay Pal and other digital lending solutions? When will these customers leave your bank for the high yield checking accounts these companies offer?

So far banks have been left of the sidelines and if you don’t act quickly there won’t be anything left to keep young customers from fleeing your bank. Consumers between the age of 22 and 40 are five times more likely to use buy now and pay for it over time than seniors and baby boomers.

Younger consumers are looking to spread out payments over time for larger purchases rather than pay for them with an evergreen credit card. They trust the bank and would rather do this business with you than a Fintech. The service has to be easy to use and convenient.

Quilo is the answer. Now is the time to disrupt the Fintech market and get in the game.

Contact Strunk at info@strunkaccess.com or 800.728.3116 for a 45 minute web demo to see if Quilo is a fit for your bank.

https://strunkaccess.com/landing-pages/quilo/

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.

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.

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 msobba@strunklp.com or 816-225-8793 for a 45 minute demo.

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.