QCash Financial, LLC, a wholly owned credit union service organization (CUSO) of Alloya Corporate Federal Credit Union, proudly announced today that on September 1, 2023, it facilitated the one millionth loan in partnership with credit unions across the United States. Astera Credit Union, in Lansing, Mich., funded QCash’s one millionth loan. In celebration of this milestone, QCash and Alloya will donate $10,000 to the charity of Astera’s choice. QCash’s CEO Seth Brickman will deliver lunch to the Astera Credit Union team as a thank-you for their partnership in serving the underserved in their community through Astera Snap Cash. “We couldn’t be more excited to celebrate this milestone and all of our credit union partners who made it possible,” remarked Brickman. “It symbolizes tremendous progress in the fight for financial inclusion – ensuring more Americans stay out of predatory lending and have access to an affordable and responsible small-dollar lending solution from their trusted financial institution.” Founded in 2015 as a wholly owned CUSO of Washington State Employees Credit Union (WSECU), QCash is a mission-driven fintech offering a relationship-based lending platform that empowers credit unions to improve the financial well-being of their communities by providing small-dollar loans to their members in under 60 seconds without the use of a credit score. For members who do not qualify for traditional lending options, QCash can offer hope. The software-as-a-service (SaaS) automates the application process, integrating with the credit union’s core processor and digital banking platform to reduce friction in the lending process, including making loans available 24x7x365 without any credit union staff involvement. “We’re so thrilled to see that QCash has provided one million loans through dozens of credit union partners, which save families money from predatory lenders in the cooperative way,” said Gary Swindler, President and CEO of WSECU. “Through a low-effort, fast-funding loan engine, members are able to access funds 24x7x365 to support them through life stages that require quick solutions to everyday needs.” “It’s a privilege to be celebrating this milestone alongside the QCash team and the 111 credit union clients that have made this millionth loan possible,” reflected Todd Adams, CEO of Alloya. “We look forward to the next million-plus loans that QCash and Alloya can facilitate together as we support our complementary missions to support credit union success and further financial inclusion.” As a credit union for credit unions, Alloya supports the success of 1,400 member credit unions through affordable and comprehensive products and services that help each credit union gain strategic advantages in the marketplace while remaining safe, secure and relevant for generations to come. Alloya acquired QCash in March of this year.
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Curql Collective, a Credit Union Service Organization driving innovation and collaboration for the credit union industry, today publicly announced the formation of its second fintech strategic investment fund, Curql Fund II. As with the fund’s predecessor, the $252 million Curql Fund I, the new fund will continue to focus on diverse offerings and early-stage investment opportunities in the fintech space. Additionally, Curql Fund II will be an opportunity for even more credit unions to participate in advancing Curql’s mission to bring fintech to credit unions. Curql’s family of funds represents the only CUSO strategic investment opportunity backed exclusively by credit unions and credit union industry partners. “Our mission is very simple; we bring fintech to credit unions. We have created an ecosystem of unparalleled collaboration at Curql and in order to continue the momentum we have had to create a pathway to what is next. Our Board of Managers has given the green light to Curql Fund II, and we couldn’t be more confident regarding our unique model for strategic investment by credit unions for the benefit of the entire industry,” said Curql Collective CEO Nick Evens. “By maintaining a commitment to compiling a diverse investment portfolio through continued partnership with our professional fund manager, we are aligning Curql Fund II to continue to de-risk these fintech CUSO investments for credit unions and build on the Curql ecosystem that is thriving. At the same time, we’re also looking forward to evolving our investments to provide credit unions with even more opportunities to compete against the giant fintech and big banks.” Investment out of Curql Fund II is slated to begin in 2024. Curql Fund II will build on the success of Curql Fund I, which began making investments in April 2021. Based on Pitchbook’s survey of investment funds from Q1 2023, Curql Fund I’s performance is in the top quartile of similar investment funds from the 2021 vintage year. Throughout the August Congressional recess, GoWest Credit Union Association and its member credit union advocates have been meeting with Senators and Congressional representatives in their home districts across all six states represented by the association – Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming. They are leveraging the opportunity to share the actual facts about how the Credit Card Competition Act will be harmful to their constituents. Two key resources in their toolbox are a comprehensive analysis by the consultancy Cornerstone Advisors documenting the harmful effects of the CCCA’s predecessor legislation, the Durbin Amendment, and GoWest’s high-level infographic showcasing Cornerstone Advisors’ rich data. “As we advocate collaboratively to pull out all the stops to defeat S.1838/H.R. 3881, we know it’s critically important to provide as much real data as possible showing the legislation is misguided,” said Ryan Fitzgerald, GoWest’s senior vice president, advocacy. “In our meetings, we have received very positive feedback on Cornerstone’s excellent analysis, and some Members of Congress have also asked for a brief overview to aid in their discussions before they take a deeper dive into the full report.” The Cornerstone Advisors analysis documents the fact that the Durbin Amendment was costly for consumers and the community financial institutions serving them, and those impacts would only worsen if debit interchange price controls and restrictions are expanded to include credit cards. Key data points being shared with Congress include: •. The promise of the Durbin Amendment was not fulfilled. o Only 1% of merchants passed savings from reduced interchange fees along to consumers, 77% did not, and 22% increased prices. o The number of free checking accounts offered by financial institutions with assets of $10 billion or over dropped from 60% to 20%. Average checking fees for consumers rose from $4.34 to $7.44 a month. •. S. 1838/H.R. 3881 Threatens Consumer Safety and Access o Merchants, who benefit greatly from the convenience of credit card purchases while bearing little to no responsibility in managing the costs of fraud, will be allowed to determine which networks credit card transactions are processed on. They may select the least expensive – and the least secure. o This would require financial institutions to replace existing credit cards at a projected cost of over $3 trillion. “Member-owned credit unions use interchange funds to cover the costs of fraud prevention and detection, replacement of compromised cards, and losses due to data breaches, and with fraud on the rise this legislation would make less funding available to protect consumers,” Fitzgerald said. “Cornerstone Advisors also found that if the legislation passes, 67% of small to medium-sized businesses won’t pass savings along to shoppers – a double whammy for consumers.” GoWest’s ask of Congress: Oppose the Credit Card Competition Act. |
Author: Mike LawsonMarried to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple. Archives
May 2024
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