Session 1 - Reinventing Small Dollar Lending

Overdraft fees are going away, one way or another. 

Good riddance. They are expensive for customers, a terrible customer experience, and have been abused by too many big institutions. But the reality is OD fee income needs to be replaced with something better for customers, and better for financial institutions.

Whether by regulation or market forces, eliminating overdraft fees doesn't solve the fundamental problem: Consumers and small businesses occasionally have the need to spend money they do not yet have in hand. Cash inflows and outflows often have timing differences,  emergency expenses pop up, bills and necessities cannot wait.

Customers are looking to fintechs, pay-day and other alternative lenders, and overdrafts to meet these needs while bank NSF/OD Programs are coming under increasing regulatory scrutiny. Some banks have eliminated all OD fee income, others are eliminating OD services entirely. FIs need to create new products to provide customers with the services they want that in a financially responsible way that puts choice and control back into their hands.

We're Building a Better Way

This hands-on collaborative Product Development (co)Lab will take a deep dive into the specific needs and use cases for customers using short-term small dollar borrowing. Our customer-centric approach leverages industry-leading tools and frameworks to help you:

• Explore financially responsible alternatives
• Increase customer choice and control
• Create new fee income opportunity
• Expand your consumer loan portfolio and margins
• Offer credit-builder opportunities for customers
• Generate revenue sharing opportunities from future FIs​

What to expect:

Two one-hour live virtual hands-on sessions, Tuesday August 15 and Thursday August 17 starting at 1:00ET/12:00CT/11:00MT/10:00PT

(THIS IS SESSON 1 OF 2. You will automatically be enrolled in both sessions when you register for one)

• Identify specific gains to be achieved, and pains to be relieved from customers' perspective
• Determine risk criteria and variables to manage 
• Apply Minimum Viable Product approach to solution design
• Set high level objectives, key metrics and big picture vision
• Establish success criteria and initial milestones
• Move quickly in a way that maximizes both effectiveness and efficiency

Participants will be able to use the outputs from these sessions to build or redesign solutions or product features to meet real-world needs on their own, or optionally, as part of a collaborative scalable venture to further share ideas, workload, revenue, and costs with others. 

Designed for team members responsible for implementing digital priorities and delivering results, including product and business leaders. The Alloy Labs Alliance is a group of some of the most innovative banks in America that collaborate to create better outcomes for customers and the industry. 

Who should attend: FI team members responsible for driving results through products, services, and solutions. Alloy (co)Labs are open only to verified employees of licensed U.S. financial institutions​.

• Alloy (co)Labs are hands-on participatory digital workshops, not webinars for passive viewing; an important part of the value is sharing and learning from multiple participant perspectives
• Participation is free to employees of member institutions of Alloy Labs
• Alloy (co)Labs are open only to verified employees of licensed U.S. financial institutions