>YES LIVE: Payday Loans & Young Adults – Opportunities for Credit Unions
(Full disclosure: In my previous job at NCUF, I worked with Lois and she is an amazing person – one of the most passionate and dedicated professionals in the credit union movement today.)
Lois discussed products and services that are used by unbanked consumers including millions by young adults. Attendees also heard how predatory lending products (such as payday loans) are used by Gen Y borrowers and how credit unions can offer products that not only beat the competition but help these young members move onto a more financially secure future.
Did you know?
- There are more payday lending stores than McDonalds and Burger King combined.
Credit unions should think about the following when deciding to offer payday loans:
- Target market
- Product mix: Delivery system
- Finding Gen Y Employees
Before the summit, I asked Lois about the importance of credit unions serving young adults and she emphasized the following:
Remember that not all of Gen Y are college students. In this country today, only about 70% of high school seniors actually graduate from high school (7,000 students per day drop out). This dramatically decreases their earning power over the life times. Credit unions must be ready to offer low-cost financial products for this very diverse market niche.
One of my favorite leaders in this area that Lois mentioned is Prospera CU’s GoodMoney Program – GoodMoney is an innovative collaboration with Goodwill Industries of North Central Wisconsin and