MADISON, Wis.––Lending money to a friend?
There’s a 43% chance the lender will not be repaid, according to an i3 team with the Filene Research Institute, which is offering a potential solution.
The i3 team is now seeking credit unions to participate in a test of a prototype for what’s being called “Bank on Family.”
“Everyone goes into peer-to-peer lending transactions with a positive state of mind, but the reality is not all informal loans get paid back,” the Filene Research Institute said. “This is not only unhelpful to the borrower but puts a strain on the relationship. Bank on Family will increase repayment rates for lenders, build borrowers’ credit, and create loyal members with healthy financial behaviors.”
Bank on Family, says the team behind the concept, “reduces the awkwardness lending between family and friends by making the credit union the facilitator of a streamlined process. Bank on Family will increase repayment rates for lenders, build borrowers credit, and create loyal members with healthy financial behaviors. That's our hypothesis and we're ready to test it.”
To be considered as a participant, go here: http://fileneresearchinstitute.formstack.com/forms/bankonfamilynoi