There is hardly any need to elaborate on the debates and allegations made over operation of Payday loan industry, both in Australia and other countries. However, there is no denying thousands of Australians still rely on online payday loan providers to run their households and resolve various types of financial problems. In last few years, the industry has grown steadily in Australia despite the steady opposition from critics. In recent times, the industry is facing a new competition- from leading pawnbrokers that have taken the online route.
The new national advertising campaign of Cash Converters comes at a time when payday lenders are literally flooding the market in Australia. The WA based finance and Pawnbroker Company has unleashed a new ad to lure more customers to its services. Online lending companies have also launched their revamped advertising campaigns in recent times.
Cash Converters wants to send across the message that it remains a major source of buying and selling used goods and getting quick money in the process. Nerida Collins, the national marketing manager of the company said the ad focuses on the entity’s diverse consumer offerings and their ease of use which help people overcome cash crunches. Listed on the ASE, Cash Converters have over 150 stores in Australia.
As competition from segment rivals grow and government regulations become tightened on payday lenders, the industry still has some sources of support, as it seems. Despite the accusations of some of the entities offering loans to people with dubious credit record, the sources of funding still exist.
Payday lenders have been accused of resorting to practices that affect national economy in long run. While ethical payday lending players do exist, a number of predatory players have surfaced over the years. They reportedly resort to aggressive interest rates and easy availability to lure users from low income groups and financially distressed people. People from various income groups resort to their loan packages to get over due sand financial burdens.
Major payday lending entities do have valid sources of funding, even now. A lot of leading payday lenders in Australia are still being supported by Westpac. The payday loan opponents and federal watchdogs are raising their voices about the need for Westpac severing its links with payday lenders. It is a matter of concern that other Australian banks do not offer funding to major payday lending companies anymore. However, Westpac is still supporting their activities through wholesale finance.
Westpac the largest funding source of payday industry is rated as one of the country’s most socially responsible bank. The fact should not be overlooked that the bank received a new award from the coveted Money magazine last year. This was despite its support for some of the largest payday loan players in Australia. Westpac has also been hailed for its corporate responsibilities over times. While most large Australian banks refuse to deal with payday lenders, this is an exception to the trend. WestPac also got ranked among the top 100 sustainable companies worldwide.