Latest PDL Demographics
Published: Tue, 09/08/15
In a nutshell, here's the latest demographic stats for payday loan, car title and installment borrowers.
Short, sweet and based on 15.3 million records from 3 credit bureaus.
Target your marketing and reap the rewards. These are OUR customers.
Online Short-Term Lending
ABOUT THE STUDY
In early 2015, the Online Lenders Alliance commissioned Bretton-Woods, Inc. to
conduct an update to last year’s statistical analysis of the customer and loan
characteristics of online short-term loans.
The 2015 study includes:
15.3 million records from three specialty credit bureaus, covering a three-year period (2012-2014).
3.7 million single payment and installment loan records from seven lenders, covering a three-year period (2012-2014).
The intent of the study was to:
Augment the credit bureau data with lender data to analyze both single pay and
installment loan usage characteristics;
Compare to the baseline data for single pay loans from the 2014 study;
Comment on the salient trends from 2012 to 2014;
Review the migration from single pay to installment loan products;
Catalogue and understand customer demographics and loan characteristics; and
Data Fact Sheet
AT A GLANCE: THE CUSTOMER
Who is Using Online Short-Term Loan Products?
Median age of the customer is 41 years old [increase from 39 in 2014 report].
Median household income is $30,235 [increase from $30,000].
Customers are primarily paid bi-weekly [consistent with last year’s study].
Who is Using Online Installment Loan Products?
Product was not evaluated in 2014, no prior comparison available.
Median age of the customer is 43 years old.
Median household income is $40,263.
Customers are primarily paid bi-weekly.
AT A GLANCE: THE LOAN
Online Short-Term Loan Usage Characteristics
Median loan amount is $428 [increase from $388 in 2014 study].
Median loan cost is $113.
Median loan terms are 20 days.
Median annual number of days indebted is 73 days [ranged from 70 to 106 days in 2014].
Online Short-Term Loan Performance Characteristics
67% of loans reported were paid [down from 71% in 2014 study].
72% 0f loans reported had no delinquency flag [consistent with 2014 study].
79% of loans reported had no charge-off flag [down from 89% in 2014 study].
Online Installment Loan Usage Characteristics
Median loan amount is $667.
Median loan cost is $690.
Median loan terms are 148 days.
Median annual number of days indebted is 135 days.
Online Installment Loan Performance Characteristics
56% of loans reported were paid as agreed.
70% of loans reported had no delinquency flag.
78% of loans reported had no charge-off flag.
Conclusions
A significant number of customers pay their loan as agreed.
There is a movement from the traditional two week “payday” product to Installment (3
to 12 month terms). Single payment loans are still a significant portion of the
market, but are declining and installment loans are increasing.
Several of the lenders represented in this analysis have either eliminated single
payment products or are migrating to the installment product while still
offering the single payment loan.
Traditional, short-term loans fit into a continuum of credit services and can be less costly
than overdrafts.