12 million borrowers. $9 billion fees earned.
According to Pew Research (2016), more than 12 million Americans use payday loans each year, generating more than $9 billion in revenue for lenders. The average amount of interest earned per client is high, because many borrowers use the service multiple times during the year. It’s easy for lenders to get in front of these borrowers using online marketing channels. According to Google Analytics, there are 670,000 Internet searches for “payday loans” each and every per month.
Increasing government scrutiny. Aggressive marketing messages.
The regulatory environment has become more restrictive as the bad apples generate negative press and unwanted legislative attention from the CFPB (Consumer Financial Protection Bureau). Their newly proposed rulings could restrict interest rates and extend the repayment term. The competition uses extremely aggressive marketing promises like: instant decisions, bad credit approved, and $100, $1,500 or $20,000 in your account within 24 hours.
State-of-the-art payday lending software that’s always regulatory compliant.
Payday lending may be the most difficult financial category to manage successfully, but the revenue potential can outweigh the complexity and risk for savvy lenders. Regulatory compliance is difficult to manage with more frequent changes and new legislation that could impact pricing and the length of loan repayment. The competition has a no-holds-barred mindset as they go after new borrowers and repeat business. And there’s the additional component of integrating the lender’s payments processing system with each client’s individual checking account.
In this complex and highly competitive environment one of your best investments is a sophisticated payday loan software system. Turnkey Lender delivers just what you need with superior automation and credit scoring to gain efficiencies and improve margins. You’ll enjoy speed, accuracy and high security; regardless of whether the system is checking income, verifying employment, or integrating the borrower’s DDA.
And with Turnkey Lender you gain two important advantages. First, our system is cloud-based, so any new regulatory compliance rulings are automatically incorporated into the foundation of our rules-based system. Plus the cloud-based platform makes it easier to launch than software out of a box. Second, our system includes alternative credit scoring models that provide more accurate profiling and risk-based pricing with prospects who may have thin credit files.
MoneyVeo is completely satisfied with the solution and recommends this company as a supplier in the area of lending, scoring, credit risk management, and consulting…
Jonathan Sarmina, CEO, MoneyVeo, Mexico
Payday Loan Software System – Key Business Benefits
Click on Turnkey Lender Cash Advance Software to learn more about our key business benefits.