Bankers Can Learn from Payday Loan Lenders

By | Jan 26, 2012

Payday loan lenders get a little respect! Michael Moebs, CEO of Moebs Services, was quoted in American Banker as follows:

“Banks can learn from payday lenders’ streamlined lending approach, says Moebs. “The thing that I’ve admired about that industry is it’s extremely efficient. They would make a banker’s head spin with how fast they can make a loan and how good they are at it,” he says. Payday lenders “take ten minutes to make a payday loan and the banker takes an hour,” he adds.

Personally, I think “an hour” is overly optimistic but the point is noted!

Of course, most of us know banks have been providing capital to the big guns in the payday loan industry since the 80’s. And several, including Chase and Wells Fargo, are offering payday loan styled products to their customers having basic bank accounts coupled with direct deposit. APR’s for their model can exceed 400%.

Read the Article here: American Banker – Banks Can Learn from Payday Lenders.

What do you think? Leave a Comment! New to the industry? Go here: Start a Payday Loan Biz

5 Comments so far
  1. Allen January 26, 2012 2:08 am

    If the bankers ever figure out how to do what we do the Pay Day Loan industry might be in trouble. :-(

  2. 888 payday January 27, 2012 9:00 am

    It’s very good information thanks.

  3. Finally: A RESPECTFUL, short comment about our industry by a Banker:

  4. swifty February 15, 2012 8:12 am

    That may be the reason why people are looking for pay day lenders instead of approaching bank. Now a days pay day lenders are having a large business network in the city.

  5. March 16, 2014 11:16 pm

    Not only that, but the punishment will depend on if the internet was used, or
    if the postal service was used. These will be discussed with the
    management of the business and this will give the opportunity to fix the weak points
    within the business. In fact, there are also forged speculation services given by
    some firm or individual.

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