Improving the small-dollar lending experience with fintech
Recently, the Fed, FDIC, OCC, and NCUA released new guidance encouraging banks and credit unions to explore responsible small-dollar loans (SDL) to consumers. The guidance suggests that new technologies can reduce underwriting costs through additional consumer data and that direct deposit information can help assess and manage credit risk. The additional signals on a consumer may allow banks to improve credit access and stand out in a competitive financial services landscape.