Point-of-sale (POS) lending isn’t a new idea. Backed by large lenders, it’s been available to consumers for decades to finance everything from furniture and home improvement to orthodontics. Today, POS lending is surging to the forefront. Driven by new technologies and increasingly credit-card averse consumers, the option of a product-specific loan at the moment of purchase, whether online or in person, is gaining traction and changing the way people think about credi
In addition to meeting consumers’ needs for real-time payment options, POS lending helps merchants sell more goods and services. POS lending has also boosted the bottom line for online lenders. According to Alan Kleine at American Banker1, a San Francisco-based firm originated more than $1 billion in point-of-sale loans in 2017.
With its finger on this exciting pulse, thirdstream is rolling out a Point of Sale lending solution for FIs to offer POS lending nationwide. Keith Ginter, CEO of thirdstream says his team is working with specific clients on a POS lending solution that will be unveiled at Canadian credit union and banking conferences in the fall of 2018.
“The POS lending solution by thirdstream is a cutting-edge financing platform, where merchants can offer customers real-time and frictionless lending online or directly from a POS terminal on-site.” It will also benefit thirdstream’s growing list of bank and credit union clients by offering “real-time adjudication and integration with the financial institution’s back-end reconciliation and reporting solutions.”
George Hofsink, thirdstream VP Sales and Marketing, adds that “POS lending is proving to be the most profitable tactic available today for FIs to grow their lending book of business and cost effectively increase membership.” Not only will it help credit unions and banks capitalize on this rapidly growing subset of personal lending, says Hofsink, it will also “serve as the catalyst for expanding volume of commercial accounts by helping them transform their customers’ experience.
1, Kleine, A. (2018, February 7). Why point-of-sale lending is hot right now. Retrieved from https://www.americanbanker.com/news/why-point-of-sale-lending-is-hot-right-now