The reasons underbanked consumers reach out to Alternative Financial Service (AFS) providers are as varied as the people themselves. They run the gamut from emergencies to managing monthly cash flow. Regardless of the reason for reaching out to alternative lenders, the prospects are excellent for continued growth.
According to the FDIC, the unbanked and underbanked population in the United States includes about 28 percent of all households which equates to around 68 million adults. In fact 25 percent of households used at least one AFS product (such as a short-term loan or a title loan) in the last year and 12 percent used an AFS product in the last 30 days.
The Center for Financial Services Innovation (CFSI) tagged the growth of the market in 2012 at nine percent with an incremental increase of $85 billion.
FactorTrust is uniquely positioned to assist alternative lenders in capturing more than their fair share of the burgeoning market. Our key core competencies include:
Our services are packaged together, or can be used independently. When packaged, lenders not only gain access to our predictive LendProtect Score and decision engine, they also reduce costs through our escalation pricing approach.
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