Many problems with payday products are concocted by activists and politicians with mercenary intent who are more interested in squelching innovation than letting people make choices for themselves.
Many banks have marketing savvy, but few effectively convert prospects into good customers. Gather sample data tracking your new-prospect encounters to see where and how you fail. Survival requires selling.
Revisiting the way banks, credit unions and nonbank lenders operate - and collaborate - will offer choices, protections and a path to greater financial security.
Developing new online platforms to lower APRs to 365% is a waste of resources. Instead, lenders can tackle the payday problem by partnering together, cultivating loyalty and capping expected default rates.
Banks are beginning to use considerable discretion in deciding what constitutes an illegal act and sometimes even an immoral act. Freeze the funds first - ask questions later.
Virtually all discussions of banking crises these days assume that depositors should always be protected, often at taxpayer expense. Let's consider whether at least some depositors should be bailed in.
Local merchants, especially those with credit card minimums, may find a small surcharge improves customer service. Alternately, all retailers should consider product level surcharging, with fees only for high cost cards.
Young hipsters aren't the only ones who want to conduct business with mobile phones. The underserved are also heavy smartphone adopters, and likely to use them for banking and payments.
Several tech startups have made short-term credit the focus of their business models. But could a product so universally frowned upon ever achieve mainstream acceptance?
