Most standard methods of loan proceeds disbursal take time. For example, electronic funds transfer can sometimes take days for money to become available – perhaps the cutoff time isn’t met; the borrower applies over the weekend; it’s a banking holiday, etc.
The inability to offer real-time debit disbursements can often lead to borrower attrition during the application process.
If a borrower does not have immediate access to their bank account information (ABA routing numbers and account numbers are required for ACH transfer), they often fail to complete their loan application. However, most potential borrowers do have immediate access to their debit card information. Providing access to loan funds via debit card can increase the number of would-be borrowers who complete the application process, and often leads to repeat customers.