THE BLOG

21
Nov

The Future of Lending to the Masses

By: Jer-Trihouse. At this year’s NJ Tech Council FinTech Conference, held in September in Jersey City, Ron Suber, president emeritus and senior adviser at Prosper (San Francisco), a FinTech lending startup, spoke about the future of FinTech and the opportunities for startups getting into the area now.

Here are  just a couple of the points he made:

  • This is now the “Big Bang” moment in artificial intelligence (AI). “We see State Street and other banks buying AI companies because they want to take all those people in the call center and turn them into bots, using alternative information and intelligence.”
  • Startups have an opportunity in FinTech because the customer is evolving. Much as Spotify killed Apple Music and Pandora, startups can get in there and disrupt. People in their ’20s want something different. In response, capital markets are changing, data is changing. “It’s your job to understand all the pressure points.”
  • If you are running an innovative FinTech company and raising funds, you will not only have to explain what you will do with the money, but also how you’ll be able to deal with the pressure created by this next generation. Remember, the children of traditional customers don’t even enter banks, except to get a roll of quarters.
If you’re a brick & mortar lender, your future is dim. Same day funding is here. Your borrower’s phone will continue to be their 1st choice as a conduit to getting MONEY into their account or on their card. Your demographic is dying. I’m not saying your store will close tomorrow BUT you must begin to address this reality TODAY and focus on building the skill sets required to succeed as a lender in this new reality.
Need help with this? Selling? Buying? Reach out! DISCREET is my middle name: Jer at Trihouse Consulting
Thanks for being a loyal email subscriber. We appreciate hearing from you. Let us know if you ever have any questions.
EAT A LOT OF TURKEY, cranberries, cornbread… and enjoy your FAMILY! Unfathomable opportunities abound and time is precious! We’re THE LUCKIEST people to have lived on Planet earth! Enjoy the RIDE!!
Jer Trihouse 702-208-6736 Cell
Knowledge Store: Tribe & State-by-State Licensing Models
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08
Nov

Great News: CFPB Payday Loan Lending Rule Stayed! Opportunities Abundant

Consumers WIN BIG! CFPB payday loan rule shut down!! And DEALS/OPPORTUNITIES are immense today.

Frankly, there has never been a better time to be “lending money to the masses.”

  • Demand for credit by borrowers is huge.
  • Stats are all over the map – depending on the source – but something like 60% of US households do not have access to $1000 cash in an emergency.
  • The big sub-prime lending season is almost upon us.
  • Jobs and ability to pay us back are through the roof.
  • Consumer optimism is sky high.
  • Washington D.C is not likely to devise too many roadblocks that could stifle all this enthusiasm.

THE BIG NEWS TODAY?

U.S. District Judge Lee Yeakel reversed a previous order and grantedContinue Reading..

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31
Oct

The CFPB- Like Giving Whiskey & Car Keys to Teenagers – More Good News for Lenders

Giving money and power to government is like giving whiskey and car keys to teenage boys. [P.J. O’Rourke.]

It’s a fact that things are looking really good for those of us who make it our “business to lend money to the masses!”

Yeah, it’s competitive out there! Yep, there is a lot of fraud. FTD [first time defaults] are scaling up.

CAC ‘s are on the increase. Elevate revealed a funded loan costs them $225 each. Enova is close. On the other hand, we have portfolios with <$80 CAC’s and <12% FTPD’s.

The economy is blazing along, average folks feel good about Continue Reading..

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29
Sep

The Business of Lending: How to Loan Money to the Masses

The Business of Lending Money to the Masses!

So you know, we’ve been pounding away at the beach cottage with a small group of seriously talented consumer loan operators and lenders the past 17 days.

The results? New guides & reports updated just this week to guarantee your consumer loan business will succeed. You have questions? Challenges?

Need answers about installment lending, car title loan lending, payday loan lending, line-of-credit loan lending… ?

Here they are:

1)  “Consumer Loan Business/Payday Loan Proforma Excel Spreadsheet Tool.” We provide a solid foundation with realistic consumer lending metrics and via the Excel Spreadsheet/Macros you change them to reflect your “secret sauce.”

2) “A Guide to Consumer Loan Company Valuations.” Valuation approaches and considerations for buyers, sellers and Startups of payday loan, installment loan, check cashing, car title loan… virtually any company funding consumer loans.

3) “How to Get Your Money.” This is one of Miro’s Powerhouse Courses for helping you to collect your consumer loan bad debt. No B.S. here from Miro. Just straight “real world” collection techniques for lenders.

4) “Tribe Sovereign Nation Documentation, Term Sheets and More.” A complete package of ALL the legal docs required by tribes, lawyers, lenders, management groups, marketer/servicer teams… to successfully launch a Tribal Lending Enterprise.

5) “Texas CAB/CSO Analysis and Docs.” A complete description of how the CAB Model works, sample docs, agreements, contracts, 3rd Pary lender introductions… Everything you need to enter the HIGHLY LUCRATIVE Texas CAB/CSO consumer loan industry.

For detailed descriptions of each new “consumer loan business tool” we just created and have them delivered into your Inbox IMMEDIATELY:
http://www.PaydayLoanIndustryBlog.com/buy-now/

 

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22
Sep

U.S. Bank Simple Loan vs Payday Loan

The CFPB has compared bank & credit union overdraft [NSF] fees to a short-term styled payday loan products with a 17,000% APR!”

According to Pew a bipartisan – in our opinion – “research association” –  12 million people a year take payday loans. If borrowers can’t make the payment, they often pay more fees to renew the loan. Payday borrowers, Pew found, spend an average of $520 in fees to repeatedly borrow $375.”

Yes, and a taxi costs $4800 from New York City to Los Angeles. BUT WHO WOULD DO THAT?Continue Reading..

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