Payday Loans – This may Infuriate You

By | Nov 6, 2013

By: Jer – Trihouse:

This is going to make a lot of my friends, peers and clients unhappy.

As a lender, I’m grappling with this “new reality” as well. But…

The non-collateralized loan product is undergoing major evolution.
Business models relying on non-amortizing loan products and/or “rollovers”
for profitability will not survive. Ultimately, convoluted, temporary
attempts to create a new “twist” on the payday loan product will
cause your Team major grief.

Frankly, anything near $30 fees per $100 loan principals will not
survive either. Disruption by technology, regulation, competition,
$$ delivery systems and the newest development, our ability to
“on-board” the 30M+ consumers lacking traditional bank accounts, has
changed the game.
If somehow you and your Team have failed to grasp this new reality,
you’re a dinosaur and you will die!

Concurrently, if executed correctly, your cost per funded loan, customer
acquisition expenditures, collection costs, remarketing fees and borrower
servicing charges will be lower as well.

Want to know more?
What do YOU think?
Jer@TrihouseConsulting.com Blast me! Embrace me!! But NEVER ignore me :o)

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2 Comments so far
  1. Scott November 8, 2013 5:52 am

    So what is it that you’re suggesting for the payday industry do in order to evolve?

  2. Payday Loan Industry November 8, 2013 10:45 am

    “Federal policymakers should make payday lenders structure their loans to be repaid over time…” Scott, this is the mantra of the consumer advocates. This is the goal of the regulators. This is our future. So, I’m saying direct lenders will have to evolve, embrace tech, drive down customer acquisition costs, improve underwriting methodologies (big data and social media footprints), DRIVE YOUR COSTS DOWN every way you can. Take market share and deliver $$ to the unbanked having jobs.

    Jer@TrihouseConsulting.com

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