Credit unions turned out a strong lending performance in 2014. The industry posted the highest year-over-year total loan growth — 10.5% — since the first quarter of 2006. What’s more, every loan category posted year-over-year growth, with new auto loans leading the way at 21.0% YOY growth. Read more credit union lending data in this week’s Graphic Of The Week.
The industry has a solid base on which to build in 2015, and the strategies, trends, and data presented this week on CreditUnions.com will help credit unions do just that.
In 3 Technology Trends That Will Affect Credit Union Lending In 2015, senior writer Marc Rapport shows how emerging technology is addressing back-end automation and front-end security. Rapport talked with United Federal Credit Union, Genisys Credit Union, and The Southern Credit Union to get a cooperative take on cloud-based lending coordination software, EMV credit and debit cards, and on/off switches that allow cardholders to set a range of alerts and permissions.
Rapport also talked with Travis Credit Union to get the inside scoop on a low-tech program that speaks to the California credit union’s unbanked market. The credit union has worked with Latino community groups, the National Credit Union Foundation, and the Coopera consulting firm to pilot the New Era Tanda Loan Program, a program based on the informal borrowing and lending circles used by Hispanic communities. In this tanda, Travis serves as the depository and lender and has added financial education and consumer protections to the mix. Read more about the TCU tanda today.
Travis has found one way to meet the distinct needs presented by its market. Vermont State Employees Credit Union, MECU of Baltimore, and Legacy Community Federal Credit Union demonstrate three other ways. In 3 Tips To Lend Niche, writer Erik Payne talked with the three credit unions — which all have solid niche portfolios — for insight on how to operate a lending program that supports those member needs that, by definition, are not a big business. 2015 is not the year to leave stones unturned, and niche opportunities can be a profitable way to augment loan growth.
In honor of lending week, CreditUnions.com has a solid lineup of Partner Perspectives to offer readers. Articles address how underwriting can drive loan growth, the correct combination of technology and staffing can increase sales, loan origination systems can refine portfolio quality, and point-of-sale consumer lending can distinguish local credit unions from large banks. There’s also a tip sheet to help credit unions determine whether they are ready for the RESPA and TILA changes.
The year offers much promise. Happy Reading.