Increase revenue and mitigate default risk

For every avoided delinquency or default, you could recognize the interest income that would be lost when borrowers can’t make their payments. Cash advances often serve borrowers with limited credit history or lower credit scores. Embedded payment insurance may help mitigate the higher default risk associated with this lending segment.

Reduce charge-off costs

Payment Guard helped a personal loan digital lender avoid an estimated $316,000 in charge-offs. Of 555 loans that became delinquent, 256 of them — with an outstanding balance of about $6 million — were covered by Payment Guard. The total financial benefit to the lender was more than $615,000, roughly 108% of the amount they paid in Payment Guard premiums.

Differentiate your offerings and attract new customers

Most consumers see loans as a commodity product, differentiated only by the interest rate they receive. You have an opportunity to offer an attractive, differentiated cash advance product by embedding loan payment insurance. Without the need to increase ad spend, attracting more borrowers with embedded loan payment insurance helps decrease customer acquisition costs.