Loan companies create a customer database
Fine Bank, which associates the largest loan companies, decided to create a database of unreliable debtors. It is to be created later this year and will collect data on past-due loans.
Fine Bank creates a database about debtors
Not only BIK, but BIG, KRD or ERIF will also collect data on unreliable debtors. The Fine Bank, which associates the largest loan companies, decided to take the matter into their own hands. As early as 2014, a customer information database for loan companies is to be created, in which companies will gather information about where the customer had the payday loan, whether he repaid it, what data he provided.
As a result, companies will be able to verify their customers more reliably, which means less risk of loan defaults. This will allow companies to reduce the cost of payday loans.
The debtors base will develop
Initially, companies associated with Fine Bank and Agree Bank will have access to the system, but any company that provides loans online can apply to join the system.
For this to happen, however, must meet the established criteria and declare to supplement the database with your information. In the future, Fine Bank plans to expand the database to include members selling loans in the field and branches.
Cooperation with the economic information office
Data on past-due loans will also be sent to one of the economic information bureaus to protect other companies not necessarily associated with the financial industry from unreliable customers. According to the president of Fine Bank, Ryba.
Loan companies are not afraid that after the introduction of the next one, the number of clients applying for payday loans will decrease, because these companies are not interested in clients who regularly do not pay their liabilities, and reliable customers will get better conditions.
Loan companies spend a lot on advertising
Despite the many advantages of payday loans, their great success would not have happened without extensive advertising. As shown by research carried out by the Institute of Media Monitoring, loan companies do not give in to advertising expenditure to the largest financial institutions, such as banks and insurers.
Cash loans were the most-advertised product in the financial industry
Ahead of personal and insurance accounts that took up subsequent places. This shows the size of this segment of the financial market and public interest. Research shows that more than half of Poles have debt in banks or other loan institutions.
The profitability of loans is attractive, despite the high risk taken by the companies. The competition is so high that marketing expenditures are necessary to gain a leading position in the market. As Chart 1 shows, despite the fact that loan companies match banks in advertising expenditure, they are far from their popularity in Social Media, which is becoming an important aspect of gaining customers. This element should be seen as further activities of loan companies in the field of marketing.