Founders Federal Credit Union Helps Reduce Members' Predatory Loan Interest Rates with Q2

Challenge

After finding a third-party lending solution, Founders needed a way to identify, educate and market the solution to qualified members

Upon evaluating the data it has on its members, Founders noticed a propensity for using title companies, check cashing companies and finance companies, so the credit union looked into the dollar limits and frequency of the loans. Founders found a third-party lending solution to address the problem, called QCash, as an alternative to payday loans used by some at-risk members who were paying 200% - 500% in interest. The problem was, few members were using the service because they didn't know it existed.

Solution

Founders needed to find a solution to help identify and market the third-party lending solution to its qualified members.

By combining Q2 SMART and Q2 Discover, Founders was able to identify qualified at-risk members for "Express Loans," and then educate and market the high-impact service to the right target audience. They enabled a seamless integration of the third-party solution into the Q2 digital banking platform via Q2 Innovation Studio, to ensure members were able to learn more and engage with the QCash opportunity right within their digital banking environment.

Results

With the help of Q2 SMART, Q2 Discover and Q2 Innovation Studio, Founders has: 

• Grown its loan volume by 10X within 90 days, from 170 loans at $300,000 to generating more than 1,700 loans at $3.6 million per month
• Significantly helped at-risk members reduce interest payments by up to 10X
• Exceed a $600,000 ROI in less than a year of deploying Q2 SMART and Q2 Discover
• Helped members pay off two or even three payday loans on the spot once funding was received
• Strengthened its member relationships and improved members' financial lives with targeted, individualized loan offers