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Your Bank Just Got the 'Green Light' to Offer Short-Term, Small Dollar Loans

Posted by Jeff Harper, President, BSG Financial Group on May 31, 2018 5:24:54 PM

The Office of the Comptroller of the Currency is encouraging banks to offer short-term, small dollar loans to subprime borrowers, according to the recent American Banker article, OCC Gives Banks Green Light to Compete with Payday Lenders.

The article states that OCC Comptroller Joseph Otting wants banks to originate loans of $300 to $5,000 to borrowers with FICO scores of 680 or below, with few other parameters beyond "sound underwriting." In doing so, the new OCC guidelines could open a $90 billion market to financial institutions.

"This product is a vehicle to help people get back into mainstream banking and get them off of high-cost financial services products of check-cashing and payday lending, with a view toward getting them into the mainstream of financial activities where they can qualify for a credit card," Otting said on a conference call with reporters.

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Topics: MinuteLender, PaySound, Consumer Loans

Community Banks Rapidly Losing Small Business & Consumer Loan Market Share

Posted by Michele Rehm, Marketing Manager on Apr 17, 2018 10:57:25 AM

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The growth of digital lending—and community banks' failure to keep up with the pace—is illustrated clearly (and pretty harshly) in the charts below. 

According to FDIC and Fintech industry data, community FIs have lost nearly half their market share of small business loans under $100k to large banks and Fintech companies in the last seven years. This is unfortunate considering that small business loans have been a distinguishing strength of community banks in the past and serve as a key pipeline for future loans.

market share sm bus loans

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Topics: Digital Lending, non-bank lenders, Small Business Loans, Fintech, Consumer Loans

Personal loans can be profitable loans with digital technology

Posted by Trevor Knott, Sr. VP Business Development on Oct 17, 2017 7:06:01 AM

This article originally published on CUInsight.com, October 12, 2017

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Topics: Digital Lending, Consumer Loans

Lending at credit unions continues to lag, but the right technology can help

Posted by Michele Rehm, Marketing Manager on Jun 13, 2017 7:53:31 AM

This article was originally published on CUInsight.com.

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Topics: Digital Lending, Small Business Accounts, Retail Banking, Consumer Loans