Implementing a small dollar loan program can benefit both your credit union and your members. But what kind of resources does it take? How many new employees will you need to hire and train?
One of the more important considerations for introducing new services is understanding the impact that it has on your credit union’s bottom line. We’ll use the QCash loan service as an example for this blog. We’ll explore what kind of requirements their credit union-specific small dollar loan platform has.
Yes, small dollar loan programs need attention
As my recent run-in with jury duty might prove, there’s no such thing as a free lunch. Small dollar loan programs will use your credit union’s existing resources. Your staff will have to put in some effort to implementing and maintaining your quick loan system.
On the bright side, it might not take too much. Your small dollar lending platform shouldn’t need more than the equivalent of 1–1.5 full-time employee’s time.
Which employees need to be involved?
For small dollar loan programs, teamwork makes the dream work. Many different employees from different departments will need to collaborate to make an effective quick loan platform viable.
None of the employees will need to put in anything resembling full-time work. However, some departments will have more responsibilities than others. Depending on which platform you use, you can expect to include staff from the following:
- IT
- Marketing
- Loan officers
- Analytics
- Accounting and reporting
- Collections
While many employees may be involved, it could end up requiring of them only a couple hours per month each.
Will it require much training?
Small dollar loan programs like the one provided with QCash require minimal training. Instead of learning a new application or familiarizing your team with a new dashboard, the platform integrates into your existing processes.
There’s no reason to reinvent the wheel. If you already have an adequate workflow for a process, you shouldn’t have to create a new one just to offer another service. There are many processes that small dollar loan programs can quickly integrate with.
1. Collections
For example, you won’t have to worry about implementing a new, separate collections system. Your small dollar loan program will fit into your current collections process. If a member is late on repayment for a small dollar loan, the loan will be automatically forwarded to your delinquent loans queue.
Essentially, a small dollar loan on a separate loan platform will be treated as any other credit union loan when it comes to repayment.
2. Core
Similarly, if your core has an imaging system, small dollar loan programs will integrate with that, too. You won’t have to worry about changing the way you handle truth in lending disclosures.
Credit union small dollar loan programs are remarkably easy to integrate into existing processes.
Who Needs Quick Loans, Anyway?
We’ve identified several reasons why someone might need quick loans. In our blog, we frequently discuss what types of situations demand immediate cash, and why. Follow the links below to read more about what contributes to the necessity of small dollar lending platforms in the market.
Or, if you’re a credit union looking to offer quick loans to your members, download our Member Crisis Guide to see even more ways you can support your members during crises.
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