MOD – (Money On Demand)

An Alternative to Predatory Payday Lending

Challenge: Southern, driven by its mission to support underserved communities, sought to counter the rise of predatory lending institutions. FIs nationwide have struggled to develop products that offer a viable alternative. In response, Southern’s innovation team developed Money on Demand, or MOD.

Solution: Users can borrow up to $400 by moving through five levels starting at $25, practicing good credit-building habits along the way. S61 was able to provide a reliable and user-friendly app that also featured:

• Risk Assessment Flow: To minimize risk while ensuring accessibility, we implemented a system for assessing users’ eligibility for advances. This system used a combination of income verification, employment history and other financial indicators to inform the client, ensuring that the app could offer advances quickly while managing risk effectively.
• Automation with Banking Systems: S61 created seamless transfers of advances to users’ accounts and automatic withdrawals for repayments. We ensured that these transactions were secure and efficient, providing users with peace of mind that their data and money were handled safely.

Outcome: Southern launched MOD as a viable alternative to traditional payday loans, offering users a more affordable and manageable way to access small advances. With its easy-to-use interface, transparent fees, and straight-forward loan level structure, the app gained significant traction among users looking for a safer financial solution. There were 63,000 downloads within a month of the initial launch and MOD made the top 100 downloaded apps in the app store.