Velocity Solutions small-dollar consumer lending platform allows financial institutions to comply with the recent joint agency recommendation
FORT LAUDERDALE, FL (April 1, 2020) — On March 26, 2020, the five primary federal financial regulators issued a joint statement encouraging banks, savings associations and credit unions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19. The statement from the Federal Reserve, Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC) and National Credit Union Administration (NCUA) recognizes that responsible small-dollar loans can play an important role in meeting consumers’ credit needs because of temporary cash-flow imbalances, unexpected expenses, or income disruptions during periods of economic stress or disaster recoveries.
CashPlease® is an automated small-dollar, short-term loan program that allows banks and credit unions to provide their account holders with easy access to cash at affordable interest rates. The solution has been proven in the marketplace for several years and has an average charge-off rate of less than 3%, lower than the credit card charge-off rate of around 3.5%.
“We launched this product in 2017 because we identified an overlooked consumer market – those who have solid relationships with their financial institution but cannot qualify for short-term credit through traditional means,” explained Christopher Leonard, attorney and CEO of Velocity Solutions. “Obtaining short-term liquidity is an ongoing concern for American consumers, but with so many Americans out of work due to the COVID-19 crisis, the need is more urgent than ever.” Leonard continued, “It’s not often we see all five federal financial regulators agreeing on a single issue. The recent joint announcement underscores the need for community financial institutions to provide their account holders with easy access to credit simply to make ends meet during this unprecedented crisis.”
In response to the coronavirus crisis, Velocity Solutions is making a special offer to financial institutions to allow them to serve consumers who need liquidity during this time of financial unrest. Velocity Solutions will implement CashPlease® on an expedited basis and will provide a one-time discount and special terms to make it easier and lower-risk for institutions that would like to try the program. For program agreements signed by May 31, 2020, Velocity Solutions is offering:
- 50% discount on implementation fee
- No monthly minimum financial commitment for the first 12 months – only ongoing fee is a per-loan fee
- Expedited implementation
To learn more about Velocity’s CashPlease® solution and to take advantage of this special offer, please visit:
About Velocity Solutions
Founded in 1995 and servicing the transaction accounts of over 30 million consumers and business owners, Velocity Solutions is the leading provider of revenue-driving solutions for community banks and credit unions. Our Velocity Intelligent Platform™ powers all of Velocity’s solutions, using machine-led intelligence that delivers powerful analytics and drives revenue, deposits and loans to our client financial institutions. For more information, please visit www.myvelocity.com.