Good Profits for Good Loans

2017/11/17

More than 50 million Americans with low or no credit scores cannot access credit from mainstream lenders. Regulatory restrictions on pay-day lending further limit their options. Happy Mango has developed off-the-shelf consumer products as well as the tools to help lenders quickly capture this market opportunity and prudently expand their customer base.

Profit from both sides of the balance sheet

Assuming 16% APR on unsecured loans and 8% APR on credit builder loans, a full-time loan officer can process 6,000-8,000 applications a year (24 to 32 per day) and produce $300K-$400K in revenue net of loss and processing costs in a year. With credit building products generating the deposits to fund the loans, funding costs will be minimal even as interest rates rise.

Minimize defaults with Cash-Flow-Based Underwriting

Using continuously updated financial account data, Happy Mango predicts borrowers’ cash flows and detects adverse changes in financial conditions before they result in late payments. Lenders can align repayment schedule with borrower cash flows and proactively reach out to borrowers at risk. With a borrower base that is 30% no-score and 70% with average FICO of 590, Happy Mango's charge-off rate is less than 5%.

Cut time and costs with digitalized processes

A customizable mobile and desk-top consumer interface lets lenders’ customers conveniently access the products. Lenders process applications and manage loans from a web-based portal, with automated credit analytics and customer communications. Documentation and signing from application to closing are digitalized. Automatic ACH payment option further improves efficiency and reduces delinquency.   

No set-up fees. No integration. No need for staff training. Terminate anytime.

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