Time travel back 20 years. Imagine going into a credit union or bank and asking for a personal loan for $500.
Reality: unless you are a very established member/customer you would be shown the door. Empty handed. That’s because, in those days, there was no way to profitably make that loan.
$50,000? Sure.
But $500 for some emergency dental work? Nah.
But now we are in 2022 and, suddenly, fast, inexpensive loan underwriting is a reality as is loan processing. Enter Quilo, a startup co-founded by Don Shafer, well known as a co founder of Kasasa (click here to hear CU 2.0 Podcast #23 on Kasasa).
Quilo’s business is making quick instalment loans to credit union members where the member chooses the payback timetable that works best for him/her.
In most cases, too, the terms are more favorable than buying over time on a credit card.
Loan decisioning also is very fast and loans can be offered on credit as well as debit transactions.
Quilo’s business model is direct to credit unions and community banks.
The company also plans to help participating credit unions market the availability of Quilo financing to merchants in their community who will be encouraged to make their customers aware of this opportunity.
Sound good? The other guest in this podcast is Joe Arnold, CEO of the $500 million Carter Credit Union in northern Louisiana. Arnold says he wants to offer Quilo to both his members and merchants in his community. He also indicates he believes Quilo will help bring new members into Carter. That means it will help solve two concerns: the need for new members and putting Carter deposits profitably to work.
This is the fourth and last quick podcast from the recent VIP Live event that brought together perhaps three dozen credit union and fintech leaders. The conversation with Armstrong and Shafer that you hear in this podcast is representative of the kinds of conversations that participants enjoyed over two and one-half days.
Wish you’d been there? Take heart. A follow up event is planned for late summer/early fall. Stay tuned.
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