Lending Articles

Strengthening Portfolio Performance is Critical in Today’s Auto Lending Marketplace

Strengthening Portfolio Performance is Critical in Today’s Auto Lending Marketplace

Since the beginning of time, lenders have sought a way to accurately measure and predict risk in their loan portfolios. Understanding risk allows lenders to make sound credit decisions and properly price loans.  Ideally, lenders need to make, at the very least, a high enough return on loans to cover the principle and any costs,…

Predictive Modeling – Important Questions that CUs Need to Ask

Predictive Modeling – Important Questions that CUs Need to Ask

As you know, the new CECL guidance calls for estimating life of loan losses for the ALLL reserve.  “Life of Loan” — just three simple words — but its implementation is anything but simple. Many factors within your portfolio can, and often do, affect loss estimates.  For example, the age of the loan, borrower’s credit…

The New Digital Lending Playbook for Credit Unions

The New Digital Lending Playbook for Credit Unions

Published in Lending

With the rise of online lenders, credit unions will face an even more competitive environment as loans are taken off paper and into the digital space. The emergence of digital lenders has introduced new competitive factors that place greater pressure on credit unions to keep up with both market trends and consumer expectations. That being…

Using Technology to Improve the UX

Using Technology to Improve the UX

Recently, our product team was involved in a discussion about “user experience.” This topic has become very important in the world of technology, as we continue to create very sophisticated tools to advance how companies, including financial institutions, do business.  However, if the user can’t figure out how to use the technology they have, it…

Member Ease of Use, A Competitive Advantage For CUs

Member Ease of Use, A Competitive Advantage For CUs

Published in Lending

“TO REALLY WIN MEMBER LOYALTY, FORGET THE BELLS AND WHISTLES AND SIMPLY SOLVE THEIR PROBLEMS” (Filene Institute) In an increasingly digital world, where speed and efficiency are expected by consumers, credit unions face ever-evolving competition in winning, and keeping, member loyalty. Filene has introduced a new report, sponsored by CU Direct, that closely examines how…

Talking CECL — Success is a Process, Not a Destination

Talking CECL — Success is a Process, Not a Destination

According to the American Bankers Association, CECL (Current Expected Credit Loss) represents “the biggest change to bank accounting, ever.” The reality of these sweeping changes in the way we have done business for the last three to four decades, for some, is daunting.  Don’t make the mistake of believing that the five years given before implementation…

The Military Lending Act – What You Need to Know

The Military Lending Act – What You Need to Know

Published in Lending

If the MLA isn’t top of mind with your institution, it needs to be front and center on your compliance checklist. As many of you are aware, Congress passed the Military Lending Act (MLA) in 2006 providing specific protections for all active duty service members and their dependents in consumer credit transactions. The Department of…

CECL – Not Your Mom’s ALLL Calculation

CECL – Not Your Mom’s ALLL Calculation

CECL (Current Expected Credit Loss) is an ongoing, pervasive topic when I sit down and talk with credit unions. I believe this is partly because many are nervous and unsure of its potential impact, and how to start preparing for it. There is a ton of information floating around on the subject; some accurate, some…

Matters of Speed and Automation

Matters of Speed and Automation

CU Direct’s maxim “Getting to Yes Faster,” referencing quick yes decisions on loan applications, has a nice ring to it. But I’d argue this isn’t just about getting to a “yes” decision quickly.  It’s also about making fast loan decisions in general, regardless of whether the answer is yes or no.  Fast decisions overall are…

Transparency is Key to Protecting Members’ Assets

Transparency is Key to Protecting Members’ Assets

My wife and I are “owned” by two German Shepherd Dogs. These are by far the smartest dogs I have ever been around.  If they had thumbs, they would probably rule the world.  But, even the smartest dogs in the pack can be fooled when they are distracted by something they are passionate about.  In…