GFA Federal Credit Union is taking significant steps toward enhancing financial inclusion by partnering with fintech company Salus to offer microloans to its members. This collaboration aims to provide quick, accessible financial solutions without the burdens of credit checks or high-interest rates, positioning microloans as a viable alternative to predatory payday loans. The initiative is particularly beneficial for younger borrowers, with 90% of microloan users aged 41 or younger, including millennials and Gen Zs who often have limited credit histories. GFA's EVP/Chief Lending Officer, Tom McGregor, emphasizes the importance of partnering with a mission-aligned fintech like Salus to ensure that members can access funds quickly during emergencies. Salus utilizes alternative data analytics to streamline the microloan process and offers tools like the Salus Stress Score, which helps credit unions assess their loan portfolios and assist members facing financial difficulties. This partnership not only aims to protect members from financial harm but also fosters long-term relationships within underserved communities.
Read the full article here.