U.S. Bank Launches Simple Loan to Meet Customers’ Short-Term Cash Needs
September 10 2018 - 10:30AM
Business Wire
Customers can borrow between $100 and $1,000
with no hidden fees
U.S. Bank has launched a new small-dollar loan product called
Simple Loan, designed to help customers deal with unexpected or
short-term cash needs with a transparent, easy-to-understand
installment loan.
According to a Federal Reserve study released in May 2018, about
40 percent of U.S. adults said they would not be able to cover a
$400 unexpected expense or would cover it by selling something or
borrowing money. Among those not able to pay the expense in full
using cash or savings, 29 percent would have no other means to be
able to pay for the expense.
“As a company, we are all focused on powering the potential of
our customers. So, every day we work to be there in the moments
that matter to them the most,” said Lynn Heitman, executive vice
president, U.S. Bank Consumer Banking Sales and Support. “Sometimes
those moments are the unexpected ones when customers need
short-term access to funds they don’t have on hand. We saw this as
a need we could help with by providing customers with a
trustworthy, transparent loan option.”
With Simple Loan, U.S. Bank checking account customers can
borrow between $100 and $1,000 with no hidden fees. Repayment takes
place over three months via three fixed payments. The loan provides
immediate access to funds with simplified pricing of $12 for every
$100 borrowed with autopay from a U.S. Bank checking account, or
$15 for every $100 if paid manually. The terms of the loan are
detailed on our website at usbank.com/simpleloan.
“Simple Loan is straightforward, transparent and more affordable
than many other products in the market. It meets a critical credit
need for customers who might otherwise be forced to seek a loan
that can carry interest charges of more than several hundred
percent,” said Paul Woodruff, executive director, Prosperity
Connection, and member, U.S. Bank Community Advisory Committee.
“People need access to small-dollar credit. U.S. Bank is answering
the call and providing a pathway for customers to save money and
meet their needs.”
U.S. Bank worked closely with, and provided full transparency
to, regulators while developing this product, and is the first
national bank to offer this type of short-term loan solution. The
company first tested the product with select customers in 2016 and
2017. Customer feedback overwhelmingly indicated that people who
used the product greatly appreciated the simple pricing structure
and immediate access to funds. In addition, customers shared they
valued that their loan was reported to credit agencies, giving them
the ability to build their credit.
U.S. Bank wants to ensure that, while this is helping to cover
critical needs for many customers, it also helps set them up for
success and the ability to move past that moment of need.
Therefore, each customer can obtain only one Simple Loan at a time
and, after repayment, there is a 30-day waiting period before a
customer can apply for an additional loan.
"Simple Loan is a major step for a national bank to provide
small-dollar loans with longer payment schedules to fit consumers'
complicated financial lives,” said José Quiñonez, founder &
CEO, Mission Asset Fund, and member, U.S. Bank Community Advisory
Committee. “I only hope that others follow U.S. Bank's lead in the
future, because consumers all across the country desperately need
credit, even if it’s $100 or $1,000 at a time."
In keeping pace with the evolving ways customers interact with
the bank, Simple Loan offers a streamlined application that is
entirely digital, from application to underwriting to booking to
funding for approved customers. It will be available only through
online banking and the bank’s mobile app, and the entire process
will take just a few minutes.
About U.S. BankU.S. Bancorp (NYSE: USB), with 74,000
employees and $461 billion in assets as of June 30, 2018, is the
parent company of U.S. Bank, the fifth-largest commercial bank in
the United States. The Minneapolis-based bank blends its
relationship teams, branches and ATM network with mobile and online
tools that allow customers to bank how, when and where they prefer.
U.S. Bank is committed to serving its millions of retail, business,
wealth management, payment, commercial and corporate, and
investment services customers across the country and around the
world as a trusted financial partner, a commitment recognized by
the Ethisphere Institute naming the bank a 2018 World’s Most
Ethical Company. Visit U.S. Bank online or follow on social media
to stay up to date with company news.
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version on businesswire.com: https://www.businesswire.com/news/home/20180910005578/en/
U.S. Bank Public Affairs and CommunicationsMolly Snyder,
612-303-0746molly.snyder@usbank.comorU.S. Bank Investor
RelationsJen Thompson, 612-303-0778jen.thompson@usbank.com
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