How Financial Literacy Positively Impacts Members

April is Financial Literacy Month, and QCash Financial is proud to join the chorus of organizations and individuals dedicated to the importance of establishing healthy and consistent personal finance habits for consumers and their families.

It’s a great time for credit unions to shine. They are committed to the benefits and details members care about; lower rates on loans and credit cards, community-centric involvement, higher savings rates, personalized credit assistance, more lenient qualification standards, and more. The key to long-term success for credit unions, however, resides in their capacity to budget for services like fintech partnerships that can draw new generations of members. 

Barriers to Members’ Financial Literacy with Credit Unions

According to research lead Caroline Vahrencamp at advisory and research group Raddon, credit unions are still struggling to gain relevance with younger consumers under age 42. Despite the financial literacy and health benefits that come with credit unions, Vahrencamp claims close to three-quarters of millennials have chosen one of the six largest banks as their primary financial institution. Why? “They have an advantage in technology,” says Vahrencamp. “They also have a perceived advantage in service. That’s a problem.” 

The Raddon report also claims, however, that 41 percent of those same millennials are open to switching financial institutions within the next year. Credit unions have an opportunity to capture an increased share of the millennial and Generation Z markets if they provide the digital banking tools and financial literacy initiatives necessary to help consumers stabilize their financial lives and improve their economic health. 

5 Advantages Members Can Gain From QCash’s Digital Small Dollar Loans

The QCash digital small dollar lending solution is an ideal tool to lift your credit union’s members above financial instability by accessing immediate, short-term cash for unexpected emergencies. We present five ways QCash can help your credit union members get back on the path to stable financial health:

41 percent of banked millenials are open to switching financial institutions within the next year, per Raddon.
Photo: Amir Khan Okutan

Saves Money

For the last 30 years, the predatory payday lending industry made their entire business model a debt trap system with annual percentage rates averaging 400. Some states like Texas ran their APRs into the late 600s. By partnering with QCash, credit unions can moderate their own APRs in order to work with members to improve their credit. Doing so enables those members to invest in other programs while increasing their savings. These growth strategies improve chances for long-term membership and loyalty for the credit union.

No Credit Check

Rather than borrowers’ poor or non-existent credit ratings flashing red flags, QCash’s digital small dollar loan platform works from within the supportive culture of the credit union movement. Credit unions’ core purpose is working with and educating member borrowers to build a path for their financial future. Small dollar loans with no credit check give opportunity and hope to borrowers who otherwise wouldn’t be able to afford one.

Available Anytime, Anywhere

By partnering with your credit union’s digital banking platform, QCash will be available to members within your credit union’s app to access fast, short-term cash when unexpected financial emergencies occur anytime, anywhere.

Affordable Help When Most Needed

The biggest benefit of the digital transformation movement is accessing the financial tools and services members need regardless of where they are. Tire blow out on the freeway and you’re short on money for the tow truck? How about those overdue electricity bills? Your credit union’s digital small dollar loan program is available instantly.

Application to Funding In Just “Six Clicks In 60 Seconds” 

Your credit union members won’t have to worry about some lumbering, complicated, or difficult-to-understand loan interface here. With QCash’s light and fast application process, In just six clicks in 60 seconds, the borrower fills out the required fields, allows a moment for the relationship-based decisioning algorithm, then watches as the money gets deposited into the borrower’s account. Feel free to visit our product page for a video example.

The financially underbanked need support and access to resources to build a brighter financial future for themselves and their communities. To see a demo, go to https://qcashfinancial.com/demo/

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