Fig Loans, a social impact startup that creates technology for underbanked Americans, partnered with Catholic Charities Dallas (CCD), one of the oldest and largest social services organizations in the Greater Dallas area, to conduct a Fig36 pilot with their financial coaches. The pilot program will be led by Parker Lumkes, CCD Financial Coach, using funds from United Way Dallas and the Credit Builder’s Alliance.
This partnership is the second pilot for the Fig36 program. “We are excited to partner with Fig Loans and be one of the first organizations to provide an alternative to payday lending for our clients and provide this path out of poverty,” says Parker. The program’s software packages Fig’s proprietary risk models, customer service, credit reporting and compliance technology for use by non-profits and employers. The program helps community organizations not only increase accessibility to safe payday loan alternatives but also create sustainable loan programs.
“We’re very excited to support Catholic Charities Dallas with their mission. Our partnership has the potential to lay the groundwork for a new era of lending to those underserved by traditional financial providers today,” says CEO and Co-Founder Jeff Zhou. The underserved families Mr. Zhou highlights above often end up paying in excess of $1,400 in interest to borrow $500 from a payday lender. According to RentCafe, the average rent for a 3 Bedroom home in Dallas as of August 2018 is $1,432. By offering substantially lower interest rates, Fig36 empowers Catholic Charities Dallas to safeguard community members from predatory payday lenders.
For more information on Fig36, please reach out to Zara Mohidin, Head of Partnerships at zara@figloans.com
