1. Fringe Banking

2. What is fringe banking? Fringe banking supplies high-interest loans to consumers not served by traditional banking institutions. Consumers using these products are typically: Underbanked – people who rely on checks and cash as a means of funding, rather than bank related methods such as credit cards or loans Unbanked – people who do not use banks or banking institutions in any capacity

3. Types of Fringe Banking Fringe banking takes place in many forms: Payday loans – borrow a small amount of money at a high interest rate to be paid back on the next payday loan approved in 2 minutes will be charged between 261% - 1304% Check cashing – cash a check for a fee, can be a percentage of the check amount or a flat fee for checks up to/including $1,000: $3 fee for checks between $1,000 - $5,000: $6 fee Pawn shops – Title loans – High-interest loans –

4. Types of Fringe Banking Pawn shop – offer short term loans using personal property as collateral, and can be bought back for the loan amount plus interest. Title loan – a loan where an asset is required as collateral

5. Types of Fringe Banking High-interest loan – loans with extraordinarily high interest rates Watch the commercial spot from Western Sky Financial for the Problem Solver Loan Problem Solver Loan Did you see the fine print? –Borrow $10,000 and pay 89.66% interest –84 monthly payments of $743.99 –Grand total paid back: $62,495.16