Tourism industry – Newton County MO Tourism Sun, 23 Jan 2022 14:45:34 +0000 en-US hourly 1 Tourism industry – Newton County MO Tourism 32 32 Installment Loans For Bad Credit – A Way To Rebuild Credit? Sun, 23 Jan 2022 14:45:31 +0000 Life can throw us curveballs every day. In the past unfortunate luck, poor decisions, or adversity could cause your credit score to be at the bottom of the range. Although there are many credit scoring methods that are used, the most widely-used one is called the FICO score, which is utilized by the major three agencies for […]]]>

Life can throw us curveballs every day. In the past unfortunate luck, poor decisions, or adversity could cause your credit score to be at the bottom of the range. Although there are many credit scoring methods that are used, the most widely-used one is called the FICO score, which is utilized by the major three agencies for credit reportage (Equifax, Experian, and TransUnion). The FICO score is between 300 and 800 and is considered to be a perfect score.

What are the consequences of bad credit? What Does It Mean For me?

What constitutes a poor credit score is determined by the lender and the kind of credit you’re looking to get. For example, a lot of home mortgage lenders view any score below 620 to be sub-prime. Other lenders may think of 640 or 680 as subprime. sub-prime is described as borrowers with a damaged or a poor credit history that are riskier to lenders. Inquire on the no checks with Bridge Payday today!

The negative effects of having bad credit are far more than the notion of normal negative consequences, like the difficulty in getting credit cards or purchasing cars or homes. The majority of people with bad credit have a difficult time:

  • Contracts for cell phones are signed
  • Secure student loans for students
  • Buy low-cost car insurance
  • find an employment

What is the significance of this connection to work? A study conducted by the Society for Human Resource Management discovered that six of ten employers conduct checks on the credit history of at least a portion of their applicants for employment and 13 percent do so on all applicants to prevent fraud and gain a sense of the trustworthiness of a potential candidate, in addition to other reasons.

Lending Money with Bad Credit

The borrowing of even tiny amounts of money may be a challenge for those who have poor credit are faced with only a few options. Traditionally, banks are the preferred option to get personal loans. But, if the credit score is a problem the odds of getting approval are low. Even with no credit issues getting loans for the low amount of money is unlikely to occur since the majority of banks don’t accept loans less than $5,000 because of the absence of revenues generated by these smaller sums.

So, where do we go from here? those who need to borrow less than $5,000 and who have poor credit?

Installment Loans for Poor Credit

Installment loans are more and more popular, particularly for those who have bad credit. Installment loans is a great option for people who face unexpected expenses or other demands, like:

  • Car repairs
  • Dental or medical bills
  • Gifts for the holidays or travel
  • The cost of a newborn baby funeral, divorce or divorce
  • Work-related expenses (electronics, tools, etc.)
  • Home improvements and emergency requirements
  • School-related expenses (tuition, laptop, supplies, etc. )
  • Consolidation of debt

What is an Installment Loan?

Simply put, an installment loan permits you to take out a loan one time and repay it by regular, fixed installments (usually monthly payments that do not change or increase) over a specified time. If you have good or poor credit, installment loans provide a fixed interest rate as well as a fixed monthly payment which is determined by the balance of your loan, the interest rate, and the time you must repay the loan. With every payment you make you lower your original amount of loan, while still paying interest charges. Auto loans and mortgages are two popular kinds of installment loans.

Installment Loans vs Payday Loans

There’s a difference there is a difference between installment loans and payday loans. In contrast to payday loans, installment loans offer larger amounts of money. They also include:

  • Refinance is much easier (based on a lower principal or with an longer maturities)
  • A solution for long-term cash requirements that must be repaid in increments

Installment loans can be beneficial for those with bad credit

It is also worth noting it is also important to note that installment loans can be good for those with bad credit. The FICO credit score is based on a number of elements of your financial history.

  • 35% History of Payments Bankruptcies, repossessions, and late payments reduce this score.
  • 30 30% Debt Burden – The current amount owed, the number of accounts with balances the amount that has been paid, etc.
  • 15 percent of the length of credit history Average account age and age of the oldest account.
  • 10 Recent Credit Searches at a % A high number of credit inquiries could lower your score.
  • 10 Types of Credit: 10 percentDifferent types of credit (such as including revolving installment, mortgage consumer finance, etc.). A balanced mix of various kinds of debt can result in higher credit scores because it suggests that you’re a knowledgeable and responsible creditor.

Installment Loans for bad Credit Borrowers: Choosing the Right Lender is important

In the highly scrutinized market for financial services of the present, it’s not difficult to spot both supporters and detractors of installment loans. For consumers with poor credit, scores experts claim that installment loans are a better alternative because unlike payday loans there’s no balloon payment that could cause the borrower to take on more debt. Additionally, because installment loans can actually improve credit scores, they automatically increase their credibility with a wide range of professional and consumer groups.

There are many people who are critical of installment loans and the companies which provide these loans. The fact is that these loans aren’t an entirely new phenomenon in the financial world and are a further reason that borrowers need to carefully review and pick the lending companies they work with.

Bridge Payday: The Way to Installment Loans when Credit is a problem

With 279 loan locations across six states of southeast Bridge Payday is a prominent service provider for installment loans for bad credit customers. Contrary to faceless lending companies that are online, Bridge Payday has a tradition of active involvement in the communities that we serve (primarily rural regions) and allowing us to get to know and assist the generations of family members. In actual fact, since 1941 our mission has been the same we serve the financial requirements of our family as well as our neighbors, providing them with the care and attention they are entitled to. Respect can mean a lot and is what is the driving force behind the development of our loan installment programs.

Some of the distinctions you’ll see when you take out the installment loans offered by Bridge Payday are:

  • Participation at the local level. Our approach to lending based on relationships requires that all decisions are taken at a local level. This means your loan representative is someone you may meet at your shopping mall or your local the little league games and not an anonymous corporate decision maker who is hundreds thousands of kilometers away. Our executives believe that this personal touch helps us make better lending decisions with installment loans, especially when the credit score is not good.
  • Transparency speeds and ease of getting the loan. Life can be difficult enough and getting the right loan with bad credit doesn’t need to be difficult. We at Bridge Payday, we work with you to make the process simple. There is no cost to begin the process and we can deliver your money within 24-hours (excluding the weekend).
  • Predictable monthly installments that increase credit . Our loans aren’t like payday loans, which are secured against your next pay check. The Bridge Payday’s installment loans – whether used to pay for necessities, bills and to pay off debt can help you save money and more efficiently manage your budget through:
    • You can make a only one monthly payment that will fit you budget.
    • We can help you reduce your debt by paying principle and not only interest.
    • This allows you to reduce debt quicker than paying for multiple separate accounts (when employed to consolidate debt).
    • The process of building your credit score when prompt payments are received.

Apply for an Installment Loan

Even though poor credit could make life financially complicated, Bridge Payday makes the procedure of getting an installment loan straightforward. If you’re facing unexpected expenses or require a little assistance in giving your family members the Christmas you would like them to enjoy We can assist. If you’re ready to start, simply fill out the form online and a representative from your local area will get in touch with you.

Upcoming results offer LendingClub a chance to validate its transformed business model Sun, 23 Jan 2022 12:35:00 +0000 Jdigital market bank loan club (NYSE:LC) will release its fourth-quarter and full-year results on January 26, while kicking off the fintech earnings season. The company and the sector have had a tough few months, with LendingClub’s share price having fallen about 45% since early November. The rapidly changing outlook and policy directions of the Federal […]]]>

Jdigital market bank loan club (NYSE:LC) will release its fourth-quarter and full-year results on January 26, while kicking off the fintech earnings season. The company and the sector have had a tough few months, with LendingClub’s share price having fallen about 45% since early November.

The rapidly changing outlook and policy directions of the Federal Reserve seem to be the main culprit, but investors should still expect LendingClub to post strong earnings and forecast a strong year in 2022 from an operating perspective. , as it continues to show off its new superior business model. in place last year. Here’s what else you can expect from Wednesday’s results.

Image source: Getty Images.

Net interest income will continue to increase

LendingClub has been in turnaround mode for several years now, but the fruits of management’s labors really started paying off when the company completed its acquisition of Radius Bank in early 2021. LendingClub is largely in the business of lending installment credit card debt consolidation, auto loan refinance, major purchases, home improvement projects and elective surgeries. The company uses technology, machine learning and automation to streamline the application, approval and underwriting process.

The acquisition of Radius created better unit economics in the model by providing stable deposits to fund a portion of originations, the elimination of external origination fees that LendingClub paid to partner banks, and regulatory clarity. It also gives the bank a better framework for holding loans on its own balance sheet and generating net recurring interest income (NII), which is the profit banks make on loans and securities after covering their cost of funding.

LendingClub management told us that loans held on the balance sheet are three times more profitable over their lifetime than those sold to investors.

Having operated its new model for only a few quarters, LendingClub is building its balance sheet. Unlike other tech lenders, now that LendingClub is a bank, it must follow bank accounting rules. Thus, instead of collecting fees for arrangements in advance, he must now amortize them over the term of the loan. In addition, it must put money aside to prepare for possible defaults on the loans it holds on its balance sheet.

Since LendingClub is still building its loan portfolio, these bank accounting policies are currently having a more outsized effect. But as the loan portfolio grows, the NII also begins to grow and makes these accounting policies less important. LendingClub generated $18.5 million from NII in the first quarter, nearly $46 million in the second, and $65.3 million in the third. Expect NII to rise again in Q4.

The bulk of LendingClub’s NII comes from its main loan product, the installment loan. The company retained about 20% of total emissions each quarter on its balance sheet. Given that the loan origination forecast for the fourth quarter is $2.8 billion to $3 billion, I expect the installment loan balances on LendingClub’s balance sheet to increase by approximately $560 million to $600 million. dollars. Ultimate growth may be lower because there will likely be previous borrowers making interest payments or repaying loan balances sooner.

The average yield on these loans is around 16%, a number that has also increased and could increase in the fourth quarter, which would also boost the NII. Add to that LendingClub’s other major source of revenue, commission revenue from selling loans to investors and banks, a number that’s stable with origination volume, and I think there’s very good chance that we will see a noticeable increase in revenue.

How will origination volumes evolve?

If you couldn’t already tell, LendingClub’s model is heavily influenced by origination volume. The more loans it makes, the more it can sell to investors, and the more it can post its own balance sheet and collect recurring NII. Management provided guidance of $2.8 billion to $3 billion for the fourth quarter. They provided those insights on October 27, which is almost a third of the way into the fourth quarter, so by then they already had good information.

In October, Fed data showed that revolving credit, which is mostly credit card debt, was up about $6.6 billion from September. LendingClub does not offer credit cards, but one of its primary use cases is credit card debt consolidation, so when credit card debt increases, it can be a precursor to the type of origination volume that LendingClub may see in the future. Non-revolving debt in October, which includes fixed-rate installment loans offered by LendingClub, rose by just under $10 billion.

But in November, growth exploded in both revolving and non-revolving debt, as consumer balance sheets began to shrink. Revolving debt increased by just under $20 billion, while non-revolving debt increased by more than $20 billion. According to Bloomberg, non-revolving debt growth was the largest in six months.

We don’t have data for December yet, and the emergence of the omicron coronavirus variant may have had some negative effects, but we do know that holiday sales performed well in December and unemployment continued to rise. to lower. This suggests that omicron probably didn’t affect the creatives at LendingClub too much.

LendingClub could also see continued tailwinds from auto refinancing, which the company has been stepping up. LendingClub CEO Scott Sanborn said on the company’s third-quarter earnings call that about two-thirds of the company’s 3.8 million members have an outstanding car loan. Sanborn also noted that the company’s auto refinance issuance jumped 85% in the third quarter. LendingClub also announced that its auto refinance loans are now available in 40 states, covering 90% of the US population.

Will LendingClub beat?

On average, analysts expect earnings per share (EPS) of $0.22 in the fourth quarter on total revenue of just under $246 million. That seems a little low to me, given that the company generated EPS of $0.26 in the third quarter on total revenue of $246.2 million.

As mentioned above, the NII is expected to increase as LendingClub’s unsecured loan balances are expected to be much higher. I’m also pleased with the origination volume in the fourth quarter given what we saw in the Fed data in November and the fact that auto refinancing continues to gain traction. Overall, I’m bullish on a beating in earnings on Wednesday.

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A “progressive” state must protect consumers | My opinion Sun, 23 Jan 2022 04:00:00 +0000 I write this on Martin Luther King Day. It is a day that inspires dreams big and small, vast or modest. My dream begins with a touch of nightmare: store loan interest rates. Then it gets better. Storefront loans, payday loans, and more deserve a long look in the current short session of the New […]]]>

I write this on Martin Luther King Day. It is a day that inspires dreams big and small, vast or modest. My dream begins with a touch of nightmare: store loan interest rates. Then it gets better.

Storefront loans, payday loans, and more deserve a long look in the current short session of the New Mexico Legislature. Over the years we know Santa Fe’s New Mexican has cleverly kept a light on this issue of storefront loans and usurious interest rates — despite efforts by industry and others to keep New Mexicans in the dark.

Milan Simonich has written extensively on the problems of storefront and payday loans (and there have been others as well), and he remains among the adamant opponents of the idea that lowering interest rates on 175% to 36% is, incredibly, “a bad idea” for New Mexico and New Mexicans. So, too, think of New Mexico and others.

The payday loan and storefront loan industry is also rising to speak out through various voices.

Recently, The New Mexican published an article by former lawmaker Richard Martinez (“Installment loans can be good for consumers”, My View, January 9).

He argued that storefront loans in New Mexico are a “good idea” at 175% interest rates because storefront lenders fill a need that no one else will – and – the industry must charge rates as high as 175% to survive. Credit unions and other lenders or lending alternatives and state analysts may argue against this claim.

Further, Martinez argues that people who argue that a 36% cap on interest rates is a good idea, “don’t understand” how “interest rates work.” (I assume he was talking to me or talking to me, among many others in New Mexico. And with respect, I state that for my part, I know there is a difference between 36% and 175% of interest expressed on any “term” – i.e. time.)

Martinez illustrated “how interest rates work” in his article by noting an example: when someone “borrows $100 today” and is charged “$1 in interest.” He continued, “If paid off in 1 year, the APR is 1%.” Thus, Mr. Martinez assumes a one-year term by referring to “APR” which stands for “annual percentage rate”. He went on to note that if the loan was paid off in “one month, the rate (presumably he meant APR) is 12%.” And, he noted in summary: “If the loan “was repaid one day after the loan was issued, the APR is 365%”.

Mr. Martinez can take me, among other readers, as a pumpkin truck driver; but, respectfully, his argument has a flat tire and consequently shakes and shakes clarity and truth. In my opinion.

He assumed a “one-year term” when he referred to the RPA.

Thus, he was correct in saying that the interest paid after one year was one dollar. But, he was wrong to suggest that a loan paid after one day that has an interest rate of 1% on $100 is thus converted into a loan with an APR of 365%. No. This is not the case. The interest the borrower would pay on a loan assuming an annual interest rate of $1 is either $1 (if such a minimum interest payment has been agreed) or 1/365th of a dollar, if possible. The APR remains, respectfully, 1 percent.

I think it is difficult to defend an industry or a person or an institution or any public body that lies and deceives (even by mistake, omission or negligence) people who are vulnerable to lies and deception. Martinez is caught in the vaporous, sticky web of an industry.

Yet we see this all over America, not just in New Mexico, today. There is no “progressive” defense for policies and practices that harm the population – and which simultaneously preserve predation aimed at the population and its basic interests.

New Mexico House Speaker Brian Egolf said during the 2021 session as part of a bill to lower the interest rate from 175% to 36% to protect New Mexicans and in a progressive but essential way to protect the economic security of the vulnerable: “My involvement right now is zero.

This kind of public blindness is actually toxic neglect of the public interest. In my opinion. Negligence is not an active, loud defense of the people, nor an excuse for lack of courage or failure to perform the duty of a public fiduciary. Yet the speaker spoke as if he could wash away the stain of his indolence on the matter with words alone. The bill he referred to is not the only problem – the problem is this: are he and his colleagues who claim progressive views prepared to stand up for New Mexico and New Mexicans against predatory lenders with something more than apologies, negligence, careless words and a blind eye?

If historic “red states” (e.g. Nevada and Nebraska) and their people can stand up to the lenders, why not a so-called “progressive” “blue” state like New Mexico? Are people really the problem in a movement towards progress?

Thankfully, the governor of New Mexico seems more than capable and ready to stand up for the health, well-being, and economic security of New Mexicans — even when some issues are really, really tough to stand on their own.

Governor Michelle Lujan Grisham knows many things, but most importantly knows that in these times – which are awash with public money (e.g. oil and gas revenues and federal relief and infrastructure funds) – there is no time to look away from the most vulnerable among us in New Mexico as we look and dream towards a brighter future in New Mexico. If the legislature issues a bill that contains an interest rate cap of 36 percent, this governor will know what to do for the people of New Mexico.

The relief provided in such a bill limiting the 36% cap on storefront loans is for everyone in this state and for the safety of this state in the future. The relief is not just for individual borrowers who have been neglected for too long; as if they weren’t reason enough.

Alexis H. Johnson, Esq., lives in Santa Fe. A longer version of this article is available online.

Consolidating Private or Federal Student Loans: What’s the Difference? Sat, 22 Jan 2022 07:04:41 +0000 If you have student loans, you may have heard of loan consolidation. This means combining several loans into one. People do this because they might be able to get a better interest rate on a single loan, and also because it’s easier to keep up with one monthly payment rather than several. Consolidation may seem […]]]>

If you have student loans, you may have heard of loan consolidation. This means combining several loans into one.

People do this because they might be able to get a better interest rate on a single loan, and also because it’s easier to keep up with one monthly payment rather than several. Consolidation may seem like an attractive option when you think about these potential benefits.

What you may not realize, however, is that there is a difference between private student loan consolidation and federal loans. We will talk about it in this article.

Private vs Federal Student Loans

Before going into student loan details debt consolidation, let’s make sure we understand the difference between a federal student loan and a private student loan. Private student loans are issued by private loan companies. Federal student loans are issued by the US Department of Education.

A private student loan is not necessarily easier to obtain than a federal loan. Federal student loans are often attractive due to deferral options, low fixed interest rates, and income-contingent repayment.

Federal Student Loan Consolidation

Let’s start by talking about federal student loan consolidation. If you have subscribed to several, grouping them together via a Direct Consolidation Credit is sometimes possible. The federal government offers this type of loan. If you have private loans, this is not an option.

You can apply for any of these consolidated loans for free. You can easily do this online without a credit check. When you do, you can choose new repayment terms. For example, you can choose a longer term loan. This will lower your monthly payments, but you’ll end up paying more interest due to the longer term of the loan.

A federal student loan consolidation loan will cause your interest rate to increase slightly. However, you can still go this route because you will now have lower monthly payments and only one bill to pay each cycle.

Consolidation of private student loans

Now let’s move on to consolidating private student loans. If you have private student loans that you want to consolidate, you can do business with a private company instead of the federal government. Like federal student loan consolidation, this option can mean lower monthly payments.

There are, however, some differences. For example, a private company will review how worthy a candidate you are based on your credit report. If you are considering a federal student loan consolidation, you will not have to go through this credit check.

The other crucial difference is that some entities through which you can obtain private student loan consolidation will charge you something they call an origination fee. It is a percentage of the loan for the treatment of the existing loan in its new consolidated version.

You might feel like this is a reason not to consolidate your private student loans if these origination fees are too high. However, you can always research lending companies to see if they don’t charge this fee or if you can find a cheaper one.

Consolidation often makes sense

Consolidation may be a logical decision if you have multiple federal or private student loans. With either option, you can extend the term of the loan, giving you more time to pay it back. You can also go from having several bills to pay each month to just one.

Remember that if you opt for a direct federal consolidation loan, you can apply for it for free and there will be no credit check. If you try to consolidate private loans with a non-federal lending entity, they will check your credit. You will also have to pay attention to any assembly costs.

Everyone with student loans must weigh the pros and cons of private or federal consolidation. A careful review of your finances will often reveal if this is a prudent option.

How permanent life insurance premiums work — Hometown Station | KHTS FM 98.1 & AM 1220 — Santa Clarita Radio Fri, 21 Jan 2022 17:17:55 +0000 Permanent life insurance allows you to provide your family with guaranteed financial support in the event of your death. But keep in mind that you must pay premiums each month to maintain the policy and avoid losing your lifetime coverage. Read on to learn more about permanent life insurance premiums and how they work. What […]]]>

Permanent life insurance allows you to provide your family with guaranteed financial support in the event of your death. But keep in mind that you must pay premiums each month to maintain the policy and avoid losing your lifetime coverage. Read on to learn more about permanent life insurance premiums and how they work.

What are permanent life insurance premiums?

Permanent life insurance premiums are the monthly fees you pay to maintain your life insurance coverage. Premiums for permanent life insurance policies tend to cost more than term life insurance premiums, but that’s because they buy you coverage for life. With term life insurance, policyholders can only get coverage for a set number of years.

How do permanent life insurance premiums work?

Each month, you will pay a premium amount defined in your insurance contract. Some permanent life insurance policies, such as whole life insurance, have a fixed premium that does not change. Others, like universal life policies, may allow you to adjust your premium. Each premium payment is divided into two installments:

Death benefit

The death benefit is the tax-free money your beneficiaries will receive if you die while your policy is still in force. It can be paid as a lump sum or in fixed installments. With some types of policies, you can adjust your premium to change the death benefit. For example, you may be able to lower your premiums in exchange for a lower death benefit.

Cash value

The other part of each premium payment goes into a savings account called the cash value. This cash value can grow at varying rates, depending on the policy. For example, whole life insurance policies offer a fixed, guaranteed interest rate. Meanwhile, universal life policies allow you to invest your cash value in the stock market for more potential growth (at the risk of incurring losses).

You can borrow from this cash value at low rates with no credit checks or monthly payments required. But keep in mind that you can’t let the loan exceed the cash value or your policy could expire. You can also withdraw funds once you have accumulated sufficient cash value, although this could potentially reduce your death benefit.

If you surrender your policy, you can get the cash value minus the surrender charge. Certain types of permanent life insurance policies may also allow you to use your cash value to cover some or all of your premium payments once you have accumulated enough savings.

The bottom line

Permanent life insurance premiums can cost more than term life insurance premiums, but for many the benefits can outweigh the costs. For one, you get lifetime coverage. Regardless of when you die, your family will receive the death benefit. Plus, the higher premiums save you money and build wealth in your cash value account, which can be a valuable asset in the future. Be sure to assess your life insurance needs and budget so you can choose the right permanent life insurance policy for you and your loved ones.

Do you have any current advice? Call us at (661) 298-1220 or email Don’t miss a thing. Get the latest KHTS Santa Clarita News alerts straight to your inbox. Report a typo or error, email

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Temenos launches the first AI-driven Buy-Now-Pay-Later banking service on the Temenos Banking Cloud Thu, 20 Jan 2022 08:14:00 +0000 New Temenos Buy-Now-Pay-Later (BNPL) banking service helps banks and non-banks offer AI-powered variable installment loans to their customers at the point of sale GENEVA, Switzerland, January 20, 2022–(BUSINESS WIRE)–Temenos (SIX: TEMN), the banking software company, today announced the launch of its Buy-Now-Pay-Later banking service. This offering will unlock new revenue opportunities for banks and fintechs, […]]]>

New Temenos Buy-Now-Pay-Later (BNPL) banking service helps banks and non-banks offer AI-powered variable installment loans to their customers at the point of sale

GENEVA, Switzerland, January 20, 2022–(BUSINESS WIRE)–Temenos (SIX: TEMN), the banking software company, today announced the launch of its Buy-Now-Pay-Later banking service. This offering will unlock new revenue opportunities for banks and fintechs, help them reach new markets, and cement their relationships with consumers and merchants through alternative credit products.

Temenos BNPL, combined with patented Explainable AI, can help banks create ethical lending programs by providing transparency in automated decisions and matching BNPL customers with appropriate credit offers based on their history.

As more consumers turn to e-commerce amid the pandemic, point-of-sale installment loans have grown in popularity and value. Consumer credit and installment loans have been revolutionized in the era of Banking-as-a-Service (BaaS) by BNPL, which integrates seamlessly into the customer’s buying journey to offer consumers a seamless digital experience and easy access to point-of-sale financing. It also helps merchants improve retail customer acquisition, wallet share, and retention. In 2021, online revenue through BNPL increased by 45% compared to 2019.1 McKinsey estimates that fintechs have embezzled up to $10 billion in annual revenue from banks over the past ~24 months with BNPL offerings.2

BNPL offers significant benefits to fintechs and banks alike. Fintechs benefit from rapid customer and merchant acquisition with relatively lower credit risk and more payment transactions. At the same time, banks can strengthen engagement with their customers, increase wallet share and loyalty by creating seamless and convenient shopping experiences. BNPL can be profitable for incumbent banks that can build on their strengths, including providing greater flexibility in loan terms and higher utilization of capital through faster loan turnover and lower regulatory capital. Additionally, BNPL presents cross-selling opportunities with potentially more engaged bank and non-bank customers.

The Temenos Buy-Now-Pay-Later banking service is consumable independently through Temenos Banking Cloud. It is independent of the underlying core banking system, being deployed alongside Temenos Transact or any other core banking solution and incorporates industry best practices while providing responsible lending capabilities to help providers adapt changes in regulations. By offering the BNPL banking service, Temenos provides a fully flexible, fee-based solution that allows banks to quickly introduce BNPL at scale without having to provide new IT infrastructure, so they can focus on the customer experience.

By integrating XAI, Temenos enables customers to pre-approve loan applications or offer variable installments in real time based on pre-determined criteria, including soft and hard credit scoring, while providing transparency on how decisions are made. This allows banks and fintechs to lend ethically, provides transparency on recommended payment schedules during the application process, and ensures consumers can afford repayments.

A global payments provider launched its Buy-Now-Pay-Later service on the Temenos Banking Cloud, growing to 22 million loan applications in just nine months, the fastest and most successful product launch in history of the company. 70% of its customers are regular users who love the product, with 50% using it again within three months.

Ginger Schmeltzer, Strategic Advisor, Retail Banking and Payments, Aite-Novarica Group: “Buy-Now-Pay-Later continues to grow in popularity, resulting in increased adoption by retailers like Target and Amazon as well as a growing number of small and medium-sized merchants. The Temenos SaaS solution for BNPL, coupled with embedded AI, combines proven technology with increased decision-making speed, efficiency, scalability and transparency. BNPL as a robust and flexible Temenos service will make this new business model available to businesses of all sizes, from credit unions and challengers, to global payments providers and Tier 1 banks.”

Max Chuard, CEO of Temenos, said: “In a fiercely competitive marketplace, financial service providers must evaluate new business models to generate revenue. As a strategic technology provider to more than 3,000 banks globally, we are committed to empowering our customers to pioneer and embrace these profitable new business models. -Now-Pay-Later has shown the industry that we can deliver new solutions to old problems. It has challenged the way we think about the “engagement, acquisition and retention of customers. We are very excited to launch this new solution to enable our customers to offer fast, transparent and scalable alternative financing.”

– Ends –

About Temenos

Temenos AG (SIX: TEMN) is the world leader in banking software. More than 3,000 banks worldwide, including 41 of the top 50 banks, trust Temenos to handle both day-to-day transactions and customer interactions for more than 1.2 billion banking customers. Temenos offers cloud-native, cloud-independent and AI-powered front office, core banking, payment and fund administration software, enabling banks to deliver seamless omnichannel customer experiences and reach operational excellence.

Temenos software has been proven to enable its top performing customers to achieve cost-to-income ratios of 26.8%, half the industry average, and returns on equity of 29%, three times the industry average. These customers also invest 51% of their IT budget in growth and innovation versus maintenance, twice the industry average, proving that banks’ IT investment adds tangible value to their business.

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1 Holiday shopping 2021: 4 ways shoppers have changed since the pandemic began (

2 Buy Now, Pay Later: Five Business Models to Compete | McKinsey

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Jessica Wolfe and Scott Rowe
Temenos Global Public Relations
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BNPL’s Growing Role in Unsecured Lending Wed, 19 Jan 2022 18:11:16 +0000 Paying for goods according to the installment plan is not a new method of payment, but it has resurfaced in response to increased consumer interest. “Buy now, pay later” gives consumers more control over how much they spend and where they spend it. It also gives them more freedom to buy the things they want, […]]]>

Paying for goods according to the installment plan is not a new method of payment, but it has resurfaced in response to increased consumer interest. “Buy now, pay later” gives consumers more control over how much they spend and where they spend it. It also gives them more freedom to buy the things they want, even without having enough money in their account.

In the United States, point-of-sale (POS) financing services have increased significantly, particularly due to restrictions related to COVID-19. Usage among the younger demographic has greatly influenced BNPL’s growth, while banking digitalization has boosted merchant adoption.

Currently, players in the fintech market are taking the lead when it comes to BNPL, and so far only a handful of banks have reacted quickly enough to be competitive. To avoid significant losses in the future, banks need to understand the current POS financing landscape and choose a model that works best for their new customers.

New business opportunities with POS loans

Traditional banks and financial institutions should see the growth of POS funding models as a signal to rethink the lending landscape and their role in it. With fintech siphoning off most of the value of banks’ point-of-sale funding, estimated at $8-10 billion so far, it’s evident that this is a very profitable market.

Another important factor is that most users engaged in online banking are young, tech-savvy millennials and Generation Z. If banks want to see their long-term goals achieved and attract the attention of these young users , they should focus on
make these changes in the system

  • Integration throughout the purchase journey
  • Rethinking risk models
  • Different approaches to credit

Integration throughout the purchase journey

As fintech works to create a complete customer buying journey, banks are falling behind. Onboarding can help scale and inspire younger generations to give banks greater visibility. Using rewards and subsidizing credit reward costs will bring more value to customers and ultimately increase their loyalty.

Rethinking risk models

Consumer expectations are increasing every day, especially with merchant subsidies. It is time for banks to rethink and update their risk models to meet these expectations. One possible solution could be merchant partnerships, as merchants play a key role as intermediaries in this model.

Different approaches to credit

The difference between traditional credit products, installment credit cards and debit cards with new features is becoming increasingly blurred. Banks that start offering credit products in the format their customers want will gain valuable benefits and profit.

Everyone, whether neobanks, card issuers, lenders or merchant acquirers, are competing for market share. By offering BNPL options, they can see how users interact with their platforms and find the right business model to stay afloat in a dynamic market.

It is clear that Buy Now, Pay Later is growing rapidly. Indeed, results from McKinsey’s 2021 Digital Payments Survey suggest that BNPL usage may actually be growing faster than its penetration.

Distinct models Buy now, pay later

As not all POS systems work the same way, the description of the systems used in the different financial markets shows how the service has evolved over a short period of time. At the same time, banks can gain a better understanding of what they are competing against and how they could outperform it.

1. Finance midsize purchases with off-card solutions
Solutions like Uplift and Affirm, which allow you to repay in monthly installments, are ideal for small and medium purchases. On average, the note size is between $250 and $2,500 and the time to repay the loan is around 8-9 months. Products purchased in this way are typically appliances, electronics, home fitness equipment, and furniture.

Most of these transactions are done digitally, and their growth is fueled by increased adoption among users with higher credit scores. However, consumers are unlikely to use this financing strategy more than a few times per year.

2. Post-Purchase Card Payments
This financing solution is popular in Asia and Latin America, although adoption rates are still quite low in the United States. Since the post-purchase refund strategy has a higher APR than other point-of-sale purchase solutions, it is less popular. However, a big advantage after purchase is the ability for merchants to use it with special offers. Card-linked payouts are currently available through services like Splitit or network solutions like Visa Payouts.

3. Shopping App Integration
The aspiration of most major shopping apps is to become “super apps”. Major market players such as PayPal’s “Pay In 4” offer services that follow customers throughout the purchase journey. Moreover, they are gradually gaining momentum. Unless banks find a way to increase their exposure, they might not be competitive at the same level and expect to suffer losses in the near future.

Pay in 4 focuses on small purchases that are typically under $250, with installments users can pay off in six weeks. Services like Afterpay have seen phenomenal growth fueled by the pandemic lockdown. With more merchants integrating these products into their payment offerings, the increase of more than 300% in 2020 could prove to be even greater in 2021. McKinsey estimates that Pay in 4 could generate between $4 and $6 billion in revenue by 2023.

Major market players recognize this trend towards integration. To secure their market positions, many have decided to integrate with Klarna and with Afterpay.

Why Consumers Use BNPL
Convenience. BNPL loans require a down payment or “down payment”, for example 25% of the purchase amount. The remaining amount is then repaid in installments over a few weeks or months.

Zero or low interest rate. BNPL loans do not include additional interest or bank charges, but they can come with a fixed repayment schedule.

Flexible credit check. To prevent fraudulent behavior, a soft credit check is performed to confirm the buyer’s identity. There will be no credit check or underwriting in the process.

Easy approval process. One of the most popular features of BNPL is the quick and easy approval process. Not only does this not affect credit scores, but it is irrelevant to other creditors.

How Banks Can Leverage POS Financing

Banks interested in getting involved in POS financing solutions can choose from different financing models. Each presents a unique opportunity as it forces banks to understand cost, time to market and customer segmentation.

Lease your balance to a BNPL company

One of the examples of collaboration between banks and BNPL companies is the model chosen by Cross River Bank and Affirm. Cross River provides Affirm with banking services so that they can endorse microfinance solutions.

Integrate credit card payments

As the BNPL market continues to grow, some banks have decided to integrate installments with existing credit cards. JP Morgan has developed Citi Flex Pay & Chase Pan to allow its customers to reimburse their purchases in installments. The strategy of adding new features to existing products or developing new financing products is a good way to meet customer needs, especially since most of them have started using alternative financing options. to avoid paying exorbitant interest on credit cards.

Take over a BNPL company
The market value of some of BNPL’s biggest players is estimated to be in the billions of dollars. AfterPay and Klarna have grown so much that even well-known market players like Mastercard, Apple Pay and Goldman Sachs have decided to offer new ways to use installments. However, as a stand-alone model, BNPL does not appear to be viable.

Develop your own BNPL solution
Some banks and financial institutions are ready to meet the needs of their customers and offer in-house developed POS financing solutions. If they want to compete with fintech, their advantage could be a partnership that allows them to build a unique product with the bespoke features their customers need.

Last word
Traditional lenders, brick-and-mortar banks, and neo-banks are all scrambling to find their footing in the POS financing market. Fierce competition will force them to use their assets to fuel the right business models and enter the market with competitive products.

What we can be certain of is the underlying need that drives customers and how point-of-sale financing addresses it. The digitization of major banking systems prevents some commercial banks from implementing clear strategies to enter this market. But with the ever expanding market scale, POS financing is here to stay.