There’s a transformation underway to help the millions of Americans - especially the middle class – achieve their financial goals. By enhancing and expediting lending services, financial technology (Fintech) companies, in partnership with community banks, are enabling consumers with low credit scores to access loans that are transparent, convenient and cost-effective.
In the past, the number of responsible borrowing options have been limited for those with low credit scores or no score at all, this group now makes up 2/3 of the US population. Fintech’s advanced analytical and technological capabilities allow banks to effectively assist these consumers.
This partnership holds the promise of ending the predatory lending practices known as payday loans, generally considered to be small-dollar amounts with short terms and sky-high interest rates. To some, these providers exploit the desperate and poor through usurious practices designed to lure the unwary into a debt trap.
The Fintech companies are disrupting non-prime lending by providing affordable loans to people who may have difficulty maintaining repayment schedules due to setbacks such as unemployment, divorce, medical emergencies or overall poor credit. This new way to access credit gives consumers a ladder up, and not a trap door to crushing debt.
There is also pending legislation before Congress which will add stability to the Bank-Fintech partnerships.
On Friday, April 27th, Ken Rees, CEO of Elevate (a leading fintech company dedicated to providing solutions for non-prime customers) will be available to discuss the emerging Bank-Fintech partnerships. He will talk about how the partnerships are disrupting the payday industry through responsible online credit solutions in an effort to help consumers build a brighter financial future.