Quick Money

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Quick Money

• Wendy Rohrer
• Summit Credit Union

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Who uses payday loans?

• Lower to middle class households
• Household Income 25,000 - 50,000
• 40 own their own homes
• 57 have a bank credit card

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Why people use payday loans

• Best way to meet an immediate need for cash
  between 100-500
• May not have access to lower cost credit or they
  are already tapped out
• Convenient
• Anonymous

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Why does Summit offer an alternative?

• In order to live our mission of improving
  members financial power, we need to provide an
  alternative to payday lending.

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Quick Money March 2005

• 1500 line of credit
• 29.9 fixed
• Annual fee of 25.00
• Monthly payments of 75.00
• Automatic payments required
• Member for 90 days
• Direct deposit

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Profitability Assumptions

• Projected portfolio size of 2.5 million
• Average loan size 1316
• Income from interest and fees
• Expenses losses from charge-off, program
  expenses and marketing expenses

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One Year Later March 2006

• 773 Quick Money loans
• Average loan size is 1350
• 59 Female, 41 Male
• 58 in the 25-44 age range
• 84 have less than 1000 in deposit balances

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Tightening the parameters

• 1000 line of credit
• 29.9 fixed
• Annual fee of 25.00
• Monthly payments of 75.00
• Automatic payments required
• Member for 1 year
• Direct Deposit

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Where are we at today?

• 890 Quick Money loans
• Average loan size 1202
• Delinquency 11 - 60
• Growth has slowed

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Quick Money

• While the Quick Money loan has proved to be a
  more affordable payday loan alternative for our
  members, it has fallen short as far as helping
  members turn their lives around.

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Questions

• Wendy Rohrer
• Assistant Vice President Lending
• Summit Credit Union
• 608-243-5000 ext 1226
• wendy.rohrer_at_summitcreditunion.com