The Big Picture of Small-Dollar Lending

About the Podcast

We're discussing how the pandemic has affected the demand for small-dollar lending. Learn best practices for 2021, like how to develop a plan that protects your credit union while preventing members from getting taken advantage of by outside lenders.

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    Key Takeaways:

    • [03:07] We continue to see the need for consumer short-term liquidity.  Prior to COVID, the numbers we were using were 39-49% of the consumer base could not put their hands on a $400 short term emergency need.  That number raised into the 70th percentile if we took the amount to $1000.  
    • [06:02] 30-50% of any given account base is living paycheck to paycheck or close to paycheck to paycheck.  Oftentimes the month is longer than the money.  
    • [09:34] 4 out of 5 people would rather get that loan from their credit union than go into a payday lender. The problem is that vehicles in most cases are simply not available. 

    Presented By

    Steve Swanston
    Steve Swanston

    Executive Vice President of Sales | Velocity Solutions

    Steve Swanston joined Velocity Solutions in 2015 as Executive Vice President of Sales. He’s responsible for defining the firm’s strategies and partnerships. Steve previously spent 10 years working at John M. Floyd & Associates (JMFA) as Executive Vice President of Sales and Business Development where he was instrumental in the firm’s sales growth.