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.
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If the bankers ever figure out how to do what we do the Pay Day Loan industry might be in trouble.
It’s very good information thanks.
Finally: A RESPECTFUL, short comment about our industry by a Banker: http://paydayloanindustryblog.com/bankers-can-learn-from-payday-loan-lenders/
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.