Low-income families use small-dollar loans for a diversity of needs, such as covering emergency expenses or patching income shocks. Providers, meanwhile, face the challenge of underwriting profitable small-dollar loans to consumers who often have no or limited credit histories. This roundtable presented both consumer and provider perspectives on small-dollar credit products, and brought researchers and industry practitioners together to exchange knowledge, with the aim of developing products that address these challenges.
I. Bank Overview of their Small-Dollar Consumers and Products
II. Understanding Small-Dollar Consumer Needs
This session reviewed what current data say about small-dollar credit consumers. Who are they? What are their needs? Why do they use these products?
III. Product Features: Consumer Perspective
This session explored which features appeal to consumers, as well as approaches to transition consumers from borrowing to saving and improving their credit scores.
IV. Product Features: Industry Perspective
This session addressed the challenges of profitably providing small-dollar credit to consumers. How can providers best underwrite and price their products?
V. Tying it Together
This session explored how to jointly meet the needs of consumers and providers.