January 2010
FITZPATRICK PRESENTS PROACTIVE APPROACH TO MARKET CHALLENGES AT ONLINE LENDERS ALLIANCE CONFERENCE
Speaking at the Online Lenders Alliance (OLA) Fourth Annual Fall Conference in Colorado Springs in October, TranDotCom CEO and founder Joe Fitzpatrick outlined a new product offering that short-term small-dollar online lenders can introduce to face changing regulatory environments.
"Based upon our experience in the marketplace, OLA asked us to present a realistic assessment of where the market has been, how it has already evolved, and to offer proactive suggestions to help lenders meet the changing market conditions," said Fitzpatrick.
His presentation "Moving Beyond Payday Lending" equated the historical changes the segment has faced and impending future changes to the premise of the national bestseller "Who Moved My Cheese?" by Dr. Spencer Johnson. Maintaining, that while consumer demand for short-tem small-dollar loan solutions has, and will always exist, Fitzpatrick acknowledged that change is inevitable. He urged attendees to think proactively, rather than reactively to changes such as regulatory pressures, and new market entrants, and presented the concepts of the Line of Credit (LOC) and installment loans as examples of new product models that can help them to serve the small-dollar market.
In introducing the audience to the LOC product, Fitzpatrick traced the challenges that TranDotCom has helped lenders meet since 1999 by adapting its core product to changing market conditions. Initially, the company met demand through sales lease-back and phone card models. Having the versatility to adapt its products, TranDotCom then progressed to a bank rate exportation model, and more recently CSO/choice of law, state by state format. Committed to innovation, the company is looking forward, and feels that the LOC product will allow lenders to positively adapt to the regulatory environment, continue to serve their current customer base, and even expand their reach to wider markets.
Structured as an open ended revolving account, the LOC offers consumers the potential of larger loan amounts and longer terms for repayment vs. a traditional short-term loan product. At the same time, the product provides lenders with a small-dollar offering that can compete more effectively in both demographically and geographically broader markets. The product can appeal to consumers who would never have considered a payday advance, and the largely untapped segment categorized as "mid-prime."
Summarizing the potential of the LOC product and TranDotCom's continued agility in adapting to new market scenarios, Fitzpatrick advocated that lenders commit for continued success by now strategizing for the future and proactively adjusting their business models to be prepared for regulatory change.
Contact us at sales@tdcemail.com