MADISON, Wis. –– TruStage has introduced a new lending solution called “Payment Guard Insurance” that it said is an embedded insurance solution for digital lenders and borrowers.
The company called the new offering a “pioneering innovation in the digital lending insurance space” that was recently named a Finovate Awards Finalist.
“It is designed to protect against unexpected covered losses that could lead to borrower defaults,” TruStage said in announcing the new product. “With TruStage Payment Guard Insurance, borrowers are protected in case of covered job loss or covered disability.”
According to the company, the Payment Guard solution is designed to be an added benefit delivered by digital lenders regardless of business sector, immediately covering borrowers when their loan is funded at no additional cost to them.
The solution is customizable to accommodate the lender’s budget and has a seamless no code implementation, TruStage added.
“Eight in 10 consumers have concerns about making their loan payments,” said Danielle Sesko, TruStage director of product management. “Our Payment Guard product offers borrowers a unique layer of protection for their payment obligations in case of covered job loss or covered disability. This product is designed to help lenders attract more borrowers, strengthen their portfolio's performance and reduce time spent on collections. We want this coverage to become a 'must have' feature for borrowers when selecting their loan products and credit providers."
Collaboration With ‘Happy Money’
TruStage reported that it collaborated with Happy Money, a platform that connects credit unions and consumers to enable access to “happier lending” at scale, on the development of the product and became the first company to integrate the solution.
“We are designing a happier way of lending that helps borrowers achieve their goals and helps credit unions achieve greater impact, and TruStage Payment Guard is a prime example of how we’re continuing to advance innovative technology and products through our platform,” said Adam Zarlengo, chief product officer of Happy Money. “Offering this coverage with every Happy Money loan helps us bring greater confidence and protection to borrowers and strengthen loan performance for our lending partners.”
TruStage reported that Zirtue, a relationship-based, peer-to-peer lending application that “simplifies loans between friends, family and trusted relationships,” has become the second platform to announce its deployment of the TruStage Payment Guard product.
‘Need to Feel Confident’
“In the current environment of high inflation and tighter financial conditions, lenders need to feel confident since more borrowers may turn to friends, family, and trusted relationships during these financially challenging times," said Dennis Cail, co-founder and CEO of Zirtue. "With friends and family being one of the largest banks in the world, our goal is to help offer relationship-based lenders the peace of mind they deserve. The TruStage Payment Guard solution enables us to provide an innovative solution that could act as a safety net for our lenders, underscoring our commitment to driving financial security and inclusion.”
TruStage said that coverage through the TruStage Payment Guard will not affect borrowers loan terms and is supported by the TruStage digital claims team.
For info: trustage.com/paymentguard.
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