By W.B. King
In early summer 2024, QCash Financial CEO Tracy Lafferty was busy working at her desk when news came down the pike that her team had collectively nabbed the 2024 Tekkie Award for Tech CUSO of the Year.
“I was thrilled,” she shared. “It’s exciting for all of us to see all of the hard work of the QCash team be recognized!”
The Naperville, Ill.-based Alloya Corporate Federal Credit Union acquired QCash Financial from Washington State Employees Credit Union (WSECU) in March 2023. Among reasons for the deal: the CUSO saw 500% growth in its client base during the preceding two years.
“Having entered a strategic partnership with Alloya in 2022 and learning about how the corporate serves 1,400 credit union members across the United States, QCash concluded Alloya would be the optimal partner to ensure the success of not only the CUSO, but also credit union clients who entrust QCash to deliver safe and equitable lending solutions for members,” Lafferty told Finopotamus.
The QCash model dates to the mid-2010s when the organization sought to instill the “people helping people” ethos into the industry, while combating predatory payday lenders.
“QCash supports credit unions in their quest to improve the financial well-being of their communities through an automated lending solution that is accessible to historically marginalized and vulnerable populations who might not qualify for traditional lending options due to poor credit or lack of credit history,” Lafferty said.
“When individuals do not qualify for or have access to traditional lending options, it deepens their dependence on predatory lenders that offer short-term loans at exorbitant rates and high fees, which ultimately entrap them in a destructive lending cycle,” she added.
Unique Lending Technology
What separates QCash from its competitors is also its underwriting technology, which uses relational data rather than credit scores. This approach enables the credit union to say “yes” to more members without compromising safe and responsible lending practices, Lafferty explained.
“Because the QCash platform automates the lending process, individuals in need are not only able to access funds in their time of need; they receive them within 60 seconds,” she said. “With QCash, credit unions can make a real difference in the lives of their members.”
Through August 2024, the CUSO has funded over 136,000 loans. Over its lifetime, QCash has funded over 1.2 million loans. With a total of 158 credit unions clients of all asset classes, the organization recently welcomed 25 new CUs.
“QCash has been made available to over one million additional credit union members year-to-date in 2024. In total, QCash’s reach exceeds 10.7 million members,” she noted. “QCash currently helps over 23,000 families make ends meet monthly.”
Empowering Members
Lafferty, who was named QCash’s CEO in early 2024, gave her successor, Seth Brickman, kudos for his many accomplishments during his three-year run.
“Seth and his team led QCash through a period of significant growth and greatly raised awareness within the credit union movement about the value of equitable and inclusive lending delivered through an innovative mobile technology experience,” she continued. “QCash has now entered a new phase with continued focus on growth, while maturing back-office operations.”
As she looks forward to 2025 and beyond, Lafferty said the QCash team will continue to identify opportunities to enhance the QCash platform, while maintaining the “high level of service” for its growing membership.
“I also serve as the chief financial officer of Alloya, a role I have held since 2020, and I will continue to serve the corporate in this capacity while leading the team at QCash,” she continued. “CUSOs like QCash Financial broaden the horizons of credit unions, empowering them to offer their members specialized services that they otherwise might not be able to offer.”