Leading Financial Institutions Continue to Test New Small-Dollar Credit Features Vancouver, B.C. – December 3, 2014 – The Financial Health Network announced today the expansion of their Small-Dollar Credit Test & Learn Working Group with the addition of Canada’s largest credit union, Vancity. Launched earlier this year, the working group brings together credit providers to pilot innovative products and features that are aligned with the Compass Guide to Small-Dollar Credit. The Compass Guide supports companies looking to safely and sustainably meet consumers’ needs by defining clear standards of quality for small-dollar credit products.
Vancity is one of the first mainstream Canadian financial institutions to offer an alternative to payday loans called the Vancity Fair & Fast Loan™. The product enables members to borrow up to $1500 at an annual interest rate of 19%, and with terms ranging from two months to two years. The Vancity Fair & Fast Loan™ relies on a combination of more inclusive eligibility criteria and an efficient application process, making the product accessible to a wide range of borrowers.
Other members of the working group are Regions Bank, Kinecta Federal Credit Union, LexisNexis Risk Solutions, and Enova International.
“Consumer financial health requires access to well-designed, high-quality products,” said Jennifer Tescher, president and CEO of the Financial Health Network. “With the working group, we are exploring new ways to meet the needs of millions of North Americans using credit products each year.”
The Financial Health Network is working with members of the working group to evaluate their products. Evaluations are designed to better understand how small-dollar credit products can meet consumer need and ultimately to encourage replication of successful approaches.
“We believe this group will provide significant insights into the future of small-dollar credit, advancing our understanding of products that contribute to positive long-term outcomes for both providers and consumers,” continued Tescher.
The working group is funded by the MetLife Foundation, the Ford Foundation, and the Omidyar Network.
Sign up for research alerts on small-dollar credit and other topics at finhealthnetwork.org.
About the Financial Health Network:
The Financial Health Network is the nation’s authority on consumer financial health. The Financial Health Network leads a network of financial services innovators committed to building a more robust financial services marketplace with higher quality products and services. Through its Compass Principles and a lineup of proprietary research, insights and events, the Financial Health Network informs, advises, and connects members of its network to seed the innovation that will transform the financial services landscape. For more on the Financial Health Network, go to finhealthnetwork.org and follow on Twitter at @finhealthnet.
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