The payday loan industry became regulated in 2008 here in Ontario. The liberal government under Kathleen Wynne regulated lenders who were charged in excess of 60% per annum. At that time, it was a criminal offence to charge more than 60%, however there were large lenders doing it anyway. Fast forward to the end of 2022 and payday lenders are still charging more than 60% - legally though. Fourteen years later, the way consumers borrow has changed dramatically.
Goodbye to Conventional Retail Stores
Virtually all consumers have a smart-phone. Visiting a brick and mortar payday loan store can amount to a 30-minute shopping experience. Through the use of modern technology, API's and artificial intelligence, a 30-minute wait time can be reduced to a matter of minutes, without the consumer having to leave their home. More and more consumers are migrating to lenders with easy-to-use, low resistance borrowing platforms such as Cash Canada.
Lenders Go Digital
For business operators who are under a lease agreement for their brick-and-mortar store, now is the time to begin growing your online loan book. Companies such as easyfinancial started doing this nearly a decade ago. Now, their online loan book is the largest "store" within their entire network of physical store outlets. Payday lenders can reduce their SG&A costs dramatically by lending online. If you opt for an automated loan CRM such as Digital Pipeline offers, you can save time, money while avoiding human lending errors.
Time to Modernize. We can help.
Need help creating or growing your online loan book? Reach out to us for support. Watson Capital & Consulting is Canada's Top Resource for the payday loan industry. Contact Preston Watson directly by calling 778-955-5644, send us a WhatsApp message to 905-906-5644, or email us via preston@watsoncap.ca. Consultations are free, so call us now.
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