For the past seven years, Truity Federal Credit Union has been turning on and off an automated credit card pre-approval program that generates new card accounts when needed and limits card growth when priorities change. The Oklahoma credit union pulls credit reports every other month and assigns non-card members to tiers based on a combination of credit score, bankruptcy indicators, and Reg Z ability to repay criteria. It then typically emails members in the top tiers with an offer to open a credit card account. Members who click “yes” visit a “congratulations” page where they verify basic information, such as their address, and indicate whether they want a cash advance. There’s little friction in that user experience, and members have taken note.
Read more: Truity Takes The Pain Out Of Pre-Approvals
The shifting economic landscape over the past 10 years has changed the way financial institutions operate and interact with consumers. As banks and mortgage lenders pulled back following the crash, credit unions stepped in and increased lending when members needed it most. In the 10 years following the recession, the credit union industry has grown its loan portfolio 82.7%. Banks in the United States increased their portfolio 73.4% during the same period. How else has credit union lending has evolved in the past decade?
Read: 10 Charts On Credit Union Lending
5.9 Percentage Points
Auto lending at U.S. credit unions was relatively robust in the third quarter despite rising interest rates and slowing growth in the loan portfolio. Up 10.8% annually, total auto lending expanded $35.8 billion over the year to $365.3 billion as of Sept. 30, 2018. Credit union auto market share has grown 5.9 percentage points in the past five years to 20.6% as of Sept. 30, 2018. With the largest market share of any major loan product, auto loans are essential to balance sheet growth at credit unions.
Read: Automobiles Drive Credit Union Lending
Total member business loans for the credit union industry have increased $5.7 billion in the past year. Total commercial loans have increased even more — $6.9 billion. As part of the NCUA’s Regulatory Modernization Initiative, the regulator has made changes to the 5300 Call Report to give credit unions greater flexibility in providing commercial and business loans to their members. Since these changes, how has member business lending grown?
Read: Credit Union Business Lending In 2018
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