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American consumers have reached a frustrating milestone in June 2024. According to the Kansas City Federal Reserve, consumer debt – driven in part by increases in credit card debt – is now higher in early 2024, at $17.7 trillion, than its prior peak during the Great Recession in the late 2000s.

As consumers struggle to negotiate the cost of living with stagnant wages, financial vulnerability continues to grow in the United States. Consider these statistics:

One can understand, then, how people in a financial bind often resort to predatory lending. The average APR in the United States is 391% for 14 days with a required credit check. Your QCash small-dollar loan product is better for your members, and they are looking for better, more affordable, and safer alternatives to those predatory lenders. 

Marketing small-dollar loans to credit union members is important to their financial health and well-being because members cannot use products they don’t know about. Your QCash small-dollar loan product will serve your members in several ways:

1. Meet Member Needs

  • Financial Inclusion: QCash small-dollar loans help credit union members who do not have access to traditional banking products, including low-income individuals or those with poor credit histories who need access to affordable credit and consistent access to financial literacy resources..
  • Financial Access: Members can avoid alternative financial resources and stay within the credit union for their small-dollar loan needs. With your QCash loan products, members are not limited to banking hours or time-consuming applications. Upon loan approval, funds are deposited immediately into their account – day or night, and even on holidays.
  • Emergency Funds: These loans can provide quick financial relief for unexpected expenses in life such as medical bills, car repairs, or other emergencies.

2. Promote Financial Health

  • Avoid Predatory Lending: QCash small-dollar loans help your members avoid high-interest payday loans and other predatory lending practices while promoting healthier financial decisions.
  • Build Credit: Regular and timely repayments on small-dollar loans can help members improve their credit scores, thus enhancing their future borrowing opportunities. 
  • Qualify for Other Products and Services: Members can move upstream to more traditional credit union products like home loans after improving their credit score.

3. Strengthen Member Loyalty

  • Member Trust: Offering products that meet the diverse needs of members can enhance trust and loyalty, as members see your credit union as a supportive and reliable financial partner. Relationship-based lending allows you to say yes to members with poor or no credit because you have true insight into their financial situation. Who knows your members better than you?
  • Community Support: Demonstrating a commitment to the financial well-being of all members, including those in financial distress, reinforces your credit union’s community-focused mission of helping people.

4. Grow Membership and Increase Sustainability

  • Expanding Product Portfolio: Adding small-dollar loans to the product mix can attract new members who need these services, thus broadening your credit union’s member base.
  • Member Experience: QCash small-dollar loans offer a fast, easy mobile experience that members have come to expect.
  • Generate Revenue: While the profit margins on small-dollar loans might be lower than larger loans, the high demand for these products can contribute to your credit union’s overall revenue. Sustainability and consistency are key to serving more members for decades to come.
Marketing
Photo: Tony Schnagl | Pexels

We hear regularly that members love learning about accessible and affordable small-dollar loans that can help them navigate unexpected expenses. Actively marketing this product can only help them overcome those expenses.

For example, in the course of fulfilling their promise to empower members through their small-dollar loan product, new QCash partner Southwest Louisiana Credit Union (SLCU) branded their small-dollar loan solution as “FLASH CA$H” and coordinated a successful email campaign. 

“We’re proud to share the success of our recent FLASH CA$H email campaign,” says Chief Lending Officer Christina Davis of her cooperative’s marketing initiative. “This was an informative email from our CEO that spoke about our exciting new easy-to-use loan product. With a phenomenal 43.8% open rate and 275 clicks, we saw 50 loan applications, 26 of which were completed, resulting in $41,726 booked in the span of 3 days. This outstanding response highlights the importance of engaging our membership and informing them of the great products we continue to bring them.”

Marketing your small-dollar loan product is a strategic move for your credit union to meet the needs of your members, promote financial health, enhance member loyalty, support credit union sustainability, advance financial inclusion, and offer greater educational opportunities. Consider sharing your loan opportunities through: 

  • Product videos
  • Website product page
  • Homepage banners
  • Mobile ads
  • Email marketing
  • Social media
  • Brochures
  • Branch banners
  • Podcasts
  • Financial education materials
  • TV advertising
  • Branch media
  • ATM screens
  • Statement headers
  • Newsletters

There are many ways to communicate to members that you can help, just as Southwest Louisiana Credit Union helped dozens of members in only 3 days. We see the value of these resources for your members. And we are here to help you market your products. Did you know that QCash credit union clients have access to FREE content to help create member awareness?

New to QCash? Mobile small-dollar lending is a fundamental upgrade that brings a core advantage in this time of digital transformation. If your credit union is interested in onboarding a faster small-dollar loan solution, we invite you to contact us directly or take a look at our free demo page on our website.