The sub-prime lending industry is a growing market consisting of alternative financial institutions servicing the under-banked community. Payday loan providers make up strong contingency in the industry, offering short-term, high-risk loans to customers in need of small amounts of money quickly, often with poor credit scores.
The Brick & Mortar arm of the payday loan industry first took root about 15 years ago and has grown steadily ever since. In 1993 less than 200 payday loan storefronts were scattered across major urban areas. Today, over 22,000 locations serve both urban and rural areas and draw clients from a broad range of demographics. Growth rate in the industry remains steady at about 20% annually.
The online segment of the industry revolutionized the market about three years ago and has shown even faster growth than its Brick & Mortar counterpart. The ease-of-use, speed-of-funding and benefit of privacy have been shown to appeal to payday customers and allowed web-based firms to take a foothold in the sub-prime lending market.
CashNetUSA has been one of the leaders of the online payday market through a secure, speedy and customer-friendly lending approach. Since inception in 2003, CNU has quickly grown to become the leading licensed online lender - offering short-term financial solutions to consumers in over 30 U.S. States and abroad. In 2005, CNU partnered with Cash America Intl. Inc. to create one of the single largest providers of both online and in-store lending options.
Despite CashNetUSA's current role as one of the premier players in the online market, there remains a great opportunity for growth within both domestic and foreign markets. Currently, the online segment makes up less than 20% of the total payday industry. With a dedication to improved and expanded marketing and an eye on the growing consumer demand for quick and simple Internet services, CNU expects to continue to grow at record pace.
Internet Lending Statistics
Sites 450
Average loan balance $0.5 million
Total Internet loan balance $225.0 million
Average fee $ 25
Average loan size $ 300
Loan principal volume $5.625 billion
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