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Short-term small dollar lending helps support consumer financial stability and health by providing needed liquidity to balance daily financial needs, weather financial ups and downs and the opportunity to build long-term financial health. By managing these loans, consumers can improve their credit scores, build upward mobility and gain access to more traditional lending products.
A digital lending platform is an omni-channel software-as-a-service application that uses a programming interface to integrate with your core financial, online banking, mobile banking and teller/contact center customer service platforms for automated underwriting and instant funding.
QCash Financial offers a white-label, highly-configurable short-term small dollar lending platform. Our case study credit union, WSECU offers their members, QCash and QCash Plus. QCash is a fee-based, single payment, short-term small dollar loan. QCash Plus is an interest-based, higher-balance short-term loan. While a credit union is not required to offer both products, it can be an advantage to offer both. These can be customized to meet your member needs to offer a short term, small dollar loan. Our platform can be easily configured to meet the PAL requirements for Federal Credit Unions. Credit unions also have the flexibility to choose the pricing for their small dollar loan products.
QCash (fee-based, single payment loan)
- Loan amounts: $50-$700 (configurable)
- No credit check
- Loans are instantly funded
- Loan term: 60 days (configurable)
- Automatic payment is set when the loan is booked on the due date of the loan
QCash Plus (interest based loan)
- Loan amounts: $701-$4,000 (configurable)
- No credit check
- Loans are instantly funded
- Loan terms: 6 – 36 months (configurable)
- Automatic monthly payments are set up when the loan is booked
The QCash digital lending platform is a software-as-a-service solution. The platform connects securely through the cloud to the credit union’s core banking platform to retrieve member relationship, behavioral attributes and all information required for instant underwriting, decisioning and funding. When a member applies through their mobile device, online banking, contact center, branch or other customer service channel, information is sent to the Microsoft Azure Cloud, a decision is given within a minute and funds are immediately deposited into the member’s account.
The QCash lending decision engine is a proven, proprietary platform built on member relationships and behavior data perfected through more than 11 years of credit union lending experience, data analytics, automated underwriting, and real-time funding. Credit unions choose to configure and implement the QCash decision engine to meet their unique lending and implementation needs. For more information, contact the QCash team.
Contact the QCash Financial team and sign a non-disclosure agreement. Begin high-level discussions on short-term small dollar lending solutions, review the program and your objectives and see a demo. Discuss onboarding requirements with all stakeholders. Review and sign the contract. Begin pre-deployment planning. Implement and launch the solution.
QCash program implementation varies based on credit union core processing, mobile and online banking systems, decisioning, project planning and other variables. A typical implementation for an existing core, online and mobile banking integration is 12 weeks, while a new core, online and mobile banking integration can be done in 5 months. To get started, please contact the QCash team.
There are two types of fees:
- Business-to-business fees: QCash Financial charges the client credit union for the short-term small dollar lending platform which may include implementation, monthly subscription and per loan fees based on the core processing, mobile, online banking and teller/contact center systems. For specific pricing, contact the QCash team.
- Member fees: The client credit union may decide whether or not to charge fees to their members. These fees may include application fees, fees per loan amount, annual percentage rates or other fees. Regulations govern the fees and lending depending on the credit union classification as noted below:
- State-Chartered Credit Unions: States have varying rules impacting fees, interest rates and terms. Ask the QCash team for details.
- Federally-Chartered Credit Unions: The NCUA 10-RA-13, Part 701, Short-term Small Dollar Loan Regulation allows the following:
- Small loans of $200 to $1,000 to borrowers who have been members for at least 1 month
- Short-terms of 1-to-6 months
- Application fee up to $20
- No rollovers
- Interest rate up to 28% Annual Percentage Rate if Federal Credit Unions meet all of the above conditions
For more information, contact the QCash team.
A dedicated Project Manager is needed to ensure the timeliness of implementation and a test environment prior to going live. Once QCash is implemented, it becomes a fully-automated system that requires a ½ to 1 full-time equivalent employee to oversee internal operations. Collection support is provided by the credit union’s Collection department.