We’re discussing how the pandemic has affected the demand for small-dollar lending. Learn best practices for 2021, like how to develop a plan that protects your credit union while preventing members from getting taken advantage of by outside lenders.
- [03:07] We continue to see the need for consumer short-term liquidity. Prior to COVID, the numbers we were using were 39-49% of the consumer base could not put their hands on a $400 short term emergency need. That number raised into the 70th percentile if we took the amount to $1000.
- [06:02] 30-50% of any given account base is living paycheck to paycheck or close to paycheck to paycheck. Oftentimes the month is longer than the money.
- [09:34] 4 out of 5 people would rather get that loan from their credit union than go into a payday lender. The problem is that vehicles in most cases are simply not available.