AQs | QCash Financial | QCash Digital Lending Platform
your questions, answered.
Short-Term small-dollar Digital Lending
- How does short-term small dollar lending help my customers and communities?
Short-term small dollar lending helps support consumer financial stability and health by providing needed liquidity to balance daily financial needs, weather financial ups and downs and the opportunity to build long-term financial health. By managing these loans, consumers can improve their credit scores, build upward mobility and gain access to more traditional lending products. This is part of QCash’s mission to develop a cash management solution to help members better manage savings, borrowing, spending and planning. By offering Q-Cash as a flexible, adaptable white-label digital lending platform, Q-Cash can help other credit unions extend these solutions to their members and promote financial stability in their communities.
- What is a digital lending platform?
A digital lending platform is an omni-channel software-as-a-service application that uses a programming interface to integrate with your core financial, online banking, mobile banking and teller/contact center customer service platforms for automated underwriting and instant funding.
QCash Lending Platform
- What is QCash and QCash Plus? Do we have to offer both products?
QCash Financial offers a white-label, highly-configurable short-term small dollar lending platform. Our case study credit union, WSECU offers their members, Q-Cash and Q-Cash Plus. Q-Cash is a fee-based , single payment, short-term small dollar loan. Q-Cash Plus is an interest-based, higher-balance short-term loan. While a credit union is not required to offer both products, these can be customized to meet your member needs to offer a short term, small dollar loan. Our platform can be easily configured to meet the PAL requirements for Federal Credit Unions. Credit unions also have the flexibility to choose the pricing for their small dollar loan products.
QCash (fee-based, single payment loan)
- Loan amounts: $50-$700 (configurable)
- No credit check
- Loans are instantly funded
- Loan term: 60 days (configurable)
- Automatic payment is set when the loan is booked on the due date of the loan
QCash Plus (interest based loan)
- Loan amounts: $701-$4,000 (configurable)
- No credit check
- Loans are instantly funded
- Loan terms: 6 – 36 months (configurable)
- Automatic monthly payment are set up when the loan is booked
- How Does QCash Work?
The Q-Cash digital lending platform is a software-as-a-service solution. The platform connects securely through the cloud to the credit union’s core banking platform to retrieve member relationship, behavioral attributes and all information required for instant underwriting, decisioning and funding. When a member applies through their mobile device, online banking, contact center, branch or other customer service channel, information is sent to the Microsoft Azure Cloud, a decision is given within a minute and funds are immediately deposited into the member’s account.
- What makes-up the QCash decision engine?
The Q-Cash lending decision engine is a proven, proprietary platform built on member relationships and behavior data perfected through more than 11 years of credit union lending experience, data analytics, automated underwriting, and real-time funding. Credit unions choose to configure and implement the Q-Cash decision engine to meet their unique lending and implementation needs. For more information, contact the Q-Cash team.
- Is QCash available through online, mobile, branch and contact center?
Yes, Q-Cash and Q-Cash Plus are highly-configurable, application programming interface-driven solutions available through multiple channels including the website, online banking, mobile, and branch and contact center delivery channels.
- Is QCash selling its loan decisioning platform?
No. Q-Cash is offered as a software-as-a-service solution with enhancements, upgrades, regular maintenance and support included in the monthly fee. The compensation model is based on a fee per Q-Cash and Q-Cash Plus loan funded.
- What steps are needed to offer QCash solutions?
Contact the Q-Cash Financial team and sign a non-disclosure agreement. Begin high-level discussions on short-term small dollar lending solutions, review the program and your objectives and see a demo. Discuss onboarding requirements with all stakeholders. Review and sign the contract. Begin predeployment planning. Implement and launch the solution.
- Are there various QCash participation levels?
Q-Cash is an “all in” engagement and there are no participation levels. The platform is highly configurable and adaptable to enable credit unions to define which lending solutions to offer its members.
- What resources are required for QCash implementation?
A dedicated Project Manager is needed to ensure the timeliness of implementation and a test environment prior to going live. Once Q-Cash is implemented, it becomes a fully-automated system that requires a ½ to 1 full-time equivalent employee to oversee internal operations. Collection support is provided by the Collection department.
- What is the architecture of QCash?
Q-Cash is a short-term small dollar software-as-a-service lending platform that uses an application programming interface to integrate with core financial, online banking, mobile banking, and teller/contact center systems for automated underwriting and instant funding. An Admin Portal features a role-based solution for managing users, support, and reporting. For mobility, Q-Cash is part of the credit union’s Android and Apple mobile web app which enables members to manage their QCash application, payments and account services. For more information, contact the Q-Cash team.
- What core processing systems does the QCash platform support?
The Q-Cash digital lending platform is designed to integrate with any bank core processing platform that has an open and available application programming interface. Please contact the Q-Cash team to discuss your core processing system and the Q-Cash platform integration status.
- Can a credit union’s other loan offers be underwritten by the QCash decision engine?
Yes. Since the Q-Cash lending platform is highly configurable and can integrate through the application programming interface to the credit union’s core processing system, a credit union can define other loan offers and decisioning parameters to support online banking, mobile banking, and other teller/contact center systems.
- How long does it take to deploy QCash? What is involved in the implementation process?
Q-Cash program implementation varies based on credit union core processing, mobile and online banking systems, decisioning, project planning and other variables. A typical implementation for an existing core, online and mobile banking integration is 12 weeks, while a new core, online and mobile banking integration can be done in 5 months. To get started, please contact the Q-Cash team.
- How do I build a QCash business case for short-term, small-dollar lending?
Contact a member of the QCash sales team to start the process.
- What are the QCash costs? How are client credit unions and their members charged for QCash?
There are two types of fees:1. Business-to-business fees: Q-Cash Financial charges the client credit union for the short-term small dollar lending platform which may include implementation, monthly subscription and per loan fees based on the core processing, mobile, online banking and teller/contact center systems. For specific pricing, contact the Q-Cash team. 2. Member fees: The client credit union may decide whether or not to charge fees to their members. These fees may include application fees, fees per loan amount, annual percentage rates or other fees. Regulations govern the fees and lending depending on the credit union classification as noted below:
- State-Chartered Credit Unions: States have varying rules impacting fees, interest rates and terms. Ask the QCash team for details.
- Federally-Chartered Credit Unions: The NCUA 10-RA-13, Part 701, Short-term Small Dollar Loan Regulation allows the following:
- Small loans of $200-to-$1,000 to borrowers who have been members for at least 1 month
- Short-terms of 1-to-6 months
- Application fee up to $20;
- No rollovers
- Interest rate up to 28% Annual Percentage Rate if Federal Credit Unions meet all of the above conditions
- How often does QCash review and validate the decision engine?
The decision engine has been perfected through more than 11 years of lending experience, and has delivered consistent, reliable performance. Loan loss rates are monitored very closely each month. If results shift too far outside established standards, accounts and lending criteria are analyzed to determine corrective actions.
- How do you market QCash?
Word-of-mouth is an effective method for promoting Q-Cash. However, Q-Cash can be marketed through multiple channels including the website, online banking, mobile, and branch and contact center. A variety of marketing tools can be used including events (webinars, webcasts, symposiums, executive briefings, speaking engagements, roundtables, and workshops), newsletters, articles, case studies, white papers, research reports, email, and blogs. A white label package is available that provides essential content, yet can be customized to match the credit union company logos and style guide.