Payday Lenders are Positioned to Excel in the New American Economic Reality

by The CAB Man Texas on October 4, 2011

Recently, I wrote a blog that focused on Lender investment opportunities and strengths of the Texas payday loan market.  Today, I expand my optimism for the payday loan industry beyond Texas. In my opinion the entire payday loan industry is primed for success in today’s new economic reality.

Why?  Look at the economic times, and apply the advantages of the industry and its products.  Need cash now, not later? Check.  Do you have credit problems? Check.  Need flexible payments? Check.  The payday loan industry was born out of innovation and has evolved into a product that flourishes in a consumer market with high defaults, poor credit, and inconsistent payments.  Because of this fact, today’s payday loan option represents an open door when so many others are closed.

Given the additional fact that the American appetite for entertainment, food, and shopping isn’t exactly dying, the industry is in a favorable position, and it is in many ways a perfect storm of opportunity.  It is not about taking advantage of consumers, it’s about meeting a consumer need.

In what ways can our industry stakeholders go beyond the “Payday Loan” and create more value in their relationships with customers?  How can the bigger challenges that the industry faces like regulation and perception be overcome?  One industry leader I know is encouraging communication and the exchange of ideas to answer such questions.  Whoever gets it right will be catapulted into the new global economic reality where they will reap the benefits.

Are we living in a new America?  Yes, and we need to shed the old ways of thinking and get on with it.  China, India and other foreign markets are seizing the opportunity to make money in our country, while America appears to be stuck in the past and applying old fashioned business standards to a world that is no more.  Welcome to the future – it is here!

Instead of trying to get back to the good ole’ days, the innovators and bright minds of today see that the best days lay ahead.  I challenge you to be an innovator and seize the opportunity to lead our country into a new, boundless reality.

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