BMG Money, a fintech committed to economic justice, is expanding into three new US states, Alaska, Nevada and North Carolina, providing access to loan products for public and private sector employees made through the lender WebBank.
Established in 2011, BMG Money aims to help the increasing number of hardworking public sector employees trapped in cycles of predatory lending.
When many people find themselves in times of financial difficulty, they turn to high-interest loans, worsening their financial situation. This is a nationwide issue – more than 12 million Americans take out a payday loan each year, resulting in more than $9billion in loan fees.
To address this, BMG Money provides access to innovative, socially responsible financing options. These solutions are offered to employees as a voluntary benefit through their employers.
Following its latest expansion, BMG Money now operates in 42 states and the District of Columbia.
“This latest expansion points to the growing need for better and safer financing options in times of emergencies,” explained Kieran Noonan, president and CEO at BMG Money. “Consumer debt levels are at a record high, putting many individuals on the brink of a financial crisis. At the same time, half of loan applicants are being denied, forcing them to predatory lending options that put them at an even greater risk.
Alleviating financial stress
Because of challenges associated with payday loans, individuals are coming to work more stressed than ever, impacting their own mental and physical health, as well as productivity levels at organisations. The US Bureau of Labor reports that worker productivity has seen the sharpest decline in 75 years, and one in five employees say that productivity at work has been impacted by financial challenges.
“BMG Money helps alleviate employee financial stress,” added Noonan. “We empower employers and government bodies to help their people solve a problem only they can fix, at no cost or risk. We solve employees’ financial difficulties by extending access to lending rates at less than one-tenth of the cost of many of the loans employees are mired in. As we continue to grow, we look forward to supporting more people and organisations in these states.”
BMG does not exclude employees based upon their credit scores and rates are comparable to credit cards versus the extremely high cost of predatory payday loans, which can see rates as high as 600 per cent in some states.
Trusted by a growing number of local, county and state government bodies as well as several of the largest privately held companies in the US, BMG Money partners with over 100 public sector employers and local, county and state government bodies nationwide.
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