AB Says High Cost Small Loans Are Not the Answer – But SafeLink® Is

On October 3^rd the American Banker published the BankThink article, “High Cost Bank Loans A Step in the Wrong Direction.”  In the article, the author makes excellent points that financial institutions can provide better services for consumers, and there is no evidence that FIs can shift use from PayDay lenders.

High cost loans that require cooling off periods do not serve FI customers, and research shows payday loan store fronts offer an experience that FIs cannot offer.  The solution is not to stoop to their level, but to offer a “safe” access to credit for those with no credit in a profitable way.

That is what SafeLink® does with a “safe” 15% re-usable line of credit that does not require a credit score and leverages a deposit relationship with the customer.  It adds no risk an FI is not already accepting in the deposit relationship, but provides a profitable set of services establishing what FIs do best:  serve customer relationships.

See more at www.rcgiltner.com.