![Page 1: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/1.jpg)
Socially responsible lending for the underbanked
![Page 2: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/2.jpg)
1
1. Introduction to Fig and our story
2. What is Fig36?
• What does it mean for FoundCom clients?
3. How does it work?
4. Live demo of Fig36 application website!
Agenda
![Page 3: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/3.jpg)
Introduction to Fig and our story
![Page 4: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/4.jpg)
Product
Customer
Difference
3
Financial products that build credit and improve financial stability
$30k-$60k income and can’t access bank loans, credit cards or online lending
Consumer-focused lender dedicated to being a non-profit community partner
Some of our partners:
![Page 5: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/5.jpg)
4
![Page 6: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/6.jpg)
“Fig addresses a desperate need where payday lenders currently control the market…”
AMY CORRON UNITED WAY HOUSTON
Fig grew out of the United Way of Greater Houston
Oct ‘14 Mar ‘15 Dec ‘17
Started conversation
Initial concept
Pilot
Oct ‘15 Jun ‘16
Credit Reporting
5
Today
Expansion
![Page 7: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/7.jpg)
Building credit is a Catch-22
To get a score, you need credit history
To build credit history, you need
credit lines
To get credit lines, you need
to qualify
To qualify for credit lines, you need a score
6
![Page 8: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/8.jpg)
gives clients a second chance at credit
Our client’s credit scores are like the photo on Brad’s license…
7
Fig lends and reports credit to fix the Catch-22
Not an up-to-date picture!
![Page 9: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/9.jpg)
What is Fig36?
![Page 10: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/10.jpg)
streamlines FC’s lending programs by offering:
9
Full servicelending
Credit reporting
Better loanoutcomes
Fig provides online loan application, underwriting tech and customer service
All loans report to all major credit bureaus
36% APR loans that help build clients credit so financial emergencies aren’t financial set backs.
Current pilots:
![Page 11: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/11.jpg)
Fig handles everything, starting with the applicationFull service lending
10
www.figloans.com/foundation-communities
![Page 12: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/12.jpg)
11
Members contact Fig to manage payments• Online -- www.figloans.com• Text / Phone -- 832-802-0344• Email -- [email protected]
Fig collects payments by ACH or Debit Card
Fig automatically reports to all three major credit bureaus
Fig provides online portal for staff to check real-time status of sponsored loans
Loan Management Credit Reporting
Full service lending Including management of the finalized loans
![Page 13: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/13.jpg)
All Fig products have the same consumer friendly terms
Flexible repayment Defaults
No late fees
No rescheduling or change fees
Reschedule to any date with no additional interest charged
Break into smaller payments at no additional cost
4 ways to reschedule:• www.figloans.com/me• Email: [email protected]• Text: 361-792-0367• Phone: 832-802-0344
No returned payment fees
Notification by text and email for returned payments
Notification by email after negative information has been reported to credit bureaus
Loans are never sold to collections or any other third party
12
![Page 14: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/14.jpg)
13
$1000 loan
$91.68 monthly
12 Monthly Payments
Example: FoundCom client takes out a $1000, 1 year loanFig36 at 36% APR
(Paid by Borrower)
$8.35
$83.33
Fig36 Payment
Interest Principal
![Page 15: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/15.jpg)
This is great but…
What does it mean for my clients?
![Page 16: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/16.jpg)
Starting Band Avg. StartingScore
Avg. Ending Score Now has access to
350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit secured credit cards• Auto loans at 13%-20%
interest500-549 520 567 (+47)
550-599 580 603 (+23)• Mortgages at 8%-10% interest• Low limit unsecured credit
cards• Auto loans at 4%-5% interest
Average Fig borrower’s score increases by 47 ptsCredit Reporting
15
![Page 17: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/17.jpg)
saves clients on average $1379.97 per loan
Amount Loan cost Total amount to be repaid APR
$500 $1282.72 $1782.72 662%
$500 $1439.20 $1939.20 731%
$500 $1579.36 $2079.36 792%
$500 $53.79 $553.79 36%
Assumption: all loans are $500 loans for 6 months
16
![Page 18: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/18.jpg)
$1379.97 in savings per loan goes a long way
Over two full weeks of income…
128% of an average client’s savings…
Two months of groceries for a family of four…
One month of rent for a family of four…
17
![Page 19: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/19.jpg)
Cool! How does it work?
![Page 20: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/20.jpg)
19
Fig36 @ Foundation Communities: operationally simple!
Apply online Provide data
Cash management, customer service,
and credit reporting
Clients
1 2
Loan sponsorship decision
3
Manage loan payments
5 4
![Page 21: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/21.jpg)
Application Demo
![Page 22: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/22.jpg)
The client goes through the Fig36 Application in 5 steps
21
Fig36 Application
Secure Information
Accept Loan
Identifying Information
Customer Disclosures
Basic Information
FoundCom Sponsorship Decision
![Page 23: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/23.jpg)
Landing Page: Clients select their loan terms
22
![Page 24: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/24.jpg)
Basic Info: Clients register on the site
23
![Page 25: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/25.jpg)
Consumer Disclosures: Clients read and sign
24
E-Sign Disclosure
Text Message Policy
![Page 26: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/26.jpg)
Identifying Info: Clients enter basic contact information
25
![Page 27: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/27.jpg)
Secure Info (Pt.1): Clients provide bank account # and SSN
26
![Page 28: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/28.jpg)
Secure Info (Pt.2): Clients verify their banking information
27
![Page 29: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/29.jpg)
Two third party banking service portals can be used to provide banking information
28
![Page 30: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/30.jpg)
When client completes application, app goes to dashboard
29
![Page 31: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/31.jpg)
FoundCom leadership decides whether to approve or not
30
![Page 32: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/32.jpg)
If approved, applicants receive an acceptance letter
31
![Page 33: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/33.jpg)
To accept the loan, clients first confirm via a 6-digit code
32
![Page 34: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/34.jpg)
Then, clients must sign loan documents
33
Electronic Funds Transfer Agreement (EFTA)
Truth in Lending Act (TILA) disclosure
![Page 35: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/35.jpg)
The loan is accepted!
34
![Page 36: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/36.jpg)
35
Questions? Feedback?
![Page 37: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/37.jpg)
Appendix
![Page 38: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/38.jpg)
Where does Fig36 fit in the coaching cycle?
37
Provide services to clients
Become a resource for low cost finance
Track performance of loan and credit score
Address upcoming large expenses or income disruptions
Kicking Off Keeping Momentum
Wrapping UpBringing Them Back
![Page 39: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/39.jpg)
How to talk to your clients about using Fig36
• Does your client need emergency financing?
• Does your client have not enough access to other forms of finance?
• Does your client meet the requirements?
• Does your client have a good relationship with you?
• What might be unusual about your client’s application? Surprises are bad!
38
Assess Apply Anticipate
![Page 40: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/40.jpg)
How to talk to your clients about using Fig36
39
Assess Apply Anticipate
• Guide your clients through the application process
• Let them know that Fig36 doesn’t use traditional credit scores
• Make sure they know that the relationship with their financial coach matters
![Page 41: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/41.jpg)
How to talk to your clients about using Fig36
40
Assess Apply Anticipate
• Manage expectations – sponsorship is not guaranteed!
• Deflect questions about approval to a loan committee that makes a final decision – don’t take personal responsibility for your client’s approval
• Prepare for if the application is denied – highlight areas for improvement
![Page 42: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/42.jpg)
Clients can apply if they meet the following:
41
q Has existing title/ payday loans (FC requirement)
q Valid Social Security number
q Valid checking account
q Online banking set up with their banking provider
q Valid Texas address
q Not using prepaid card
![Page 43: Socially responsible lending for the underbanked...Starting Band Avg. Starting Score Avg.Ending Score Nowhas access to 350-499 450 544 (+94)• Gov’t assisted mortgages • Low limit](https://reader034.vdocument.in/reader034/viewer/2022051908/5ffc23f04dc06401753d1902/html5/thumbnails/43.jpg)
In an ideal world, the best Fig36 applicants have…
42
q Online banking for a checking account with:o At least 30 transactionso At least 60 days of historyo Balance of greater than -$500
q Sustainable debt levels (<25% of monthly income)
q Regular take home pay of at least $300 a week
q No imminent risk of bankruptcy or default on majority of debts, or critical bills like utilities or housing
q Good relationship with financial coach