How individual payment protection coverage can help banks and fintechs overcome lending challenges

Today's market conditions make it even more challenging for banks and fintechs to sustain lending growth. The 90 plus day delinquency rate is on the rise across credit cards, auto loans and mortgages¹ — demonstrating the difficulty of generating new loans while reducing risk. Increasing competition is also adding pressure. Lenders are seeing the need to launch new products, optimize experiences and scale for efficiency, all without compromising compliance.

Financial anxiety among consumers is another critical factor impacting lending. Only 55% of American adults have three months of savings,² and 31% of households reported that their income varies somewhat or a lot each month.³ This leaves many potential borrowers feeling worried about the consequences of taking out new loans. Even a single missed payment can trigger credit score downgrades, increase costs of credit and lead to financial exclusion.

To combat these challenges in the loan market, banks and fintechs should adopt innovative solutions that help drive sustainable growth and better protect borrowers.

How can individual payment protection help lenders grow and protect borrowers?

TruStage™ continues to develop innovative solutions that target key pain points for financial institutions and borrowers. Our new TruStage™ Payment Guard Advantage Insurance is designed to protect borrowers' financial well-being by paying a lump-sum benefit in the event of a covered job loss or disability.

With Payment Guard Advantage, lenders can embed offers for payment insurance directly into existing digital consumer lending workflows without disruption — helping promote borrower financial health and more secure loans at scale. This simple borrower-paid product provides financial institutions with the unique opportunity to enhance payment protection offerings and build trust while staying compliant with regulatory standards.

Designed to not disrupt the borrower experience, the entire process can happen within the digital loan flow. The borrower simply:

1. Views Payment Guard Advantage offers and customizes coverage with clear, real-time pricing
2. Instantly selects the desired offer
3. Completes the application with an electronic signature
4. Receives approval in seconds
5. Begins coverage on day one in most cases (new covered losses that occur after the waiting period would be eligible for benefits)

When the time comes, filing claims is simple with our step-by-step online portal.

How easy is it to integrate Payment Guard Advantage into the lending workflow?

At TruStage, we understand that each financial institution's resource capacity, product roadmap and tech stack differ. That's why we developed a range of integration options to fit various needs. Our three flexible integration options include:

• Simple path: Add payment protection with minimal setup; simply link to TruStage.
• Application path: Use our plug-and-play widget, great when customization isn't a priority.
• Full integration: Connect through our API for complete flexibility and automation.

By integrating payment protection insurance for borrowers into the loan application workflow, banks and fintechs can help drive lending growth, build loyalty and stay compliant all at once. Please reach out to one of our TruStage specialists to learn how Payment Guard Advantage fits into your lending strategy.