Lending Insights Articles

Lending Data & the Credit Union Mandate

Lending Data & the Credit Union Mandate

The very first provision of the Federal Credit Union Act declares that, in addition to promoting thrift, credit unions exist to create a source of credit for members to be used for provident or productive purposes. The lending department is key to credit unions fulfilling this mandate. Your credit union’s loan products help members build…

The Prospects of Change

The Prospects of Change

This is graduation season. Over the past two weekends, I’m proud to have had the opportunity to celebrate college graduations for my youngest two daughters.  It has certainly been hectic, as these graduations were at two different schools — in two different states, but it is truly a blessing to know that I have completed…

The Time Is Now to Prioritize Technology for the Future

The Time Is Now to Prioritize Technology for the Future

With the economy improving, the unemployment rate being the lowest it has been in nine years, and consumer confidence building momentum, credit unions continue to experience steady member and loan growth, low delinquencies and charge offs. These are all very positive signs, but can foster a false sense of security if not careful.  History has…

Drive ’17 Conference Delivers the Speakers and Strategies to Help CUs Win

Drive ’17 Conference Delivers the Speakers and Strategies to Help CUs Win

The lending marketplace continues to see competition ramp up. And now, more than ever, to remain not only competitive, but to gain market share, credit unions that embrace cutting-edge technology and strategies to capture more loans, improve loan portfolio performance, better engage members, and improve member loyalty, have a distinct advantage. Leading experts and innovators…

Fifty First Loans

Fifty First Loans

Well, February is considered the month of love, and on February 14th you most likely took the opportunity to tell that someone special in your life what you should have told them, repeatedly, over the last 365 days.  There used to be an old marriage joke that maybe worked in the mid-twentieth century, but probably doesn’t…

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…

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…

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…

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…