SEATTLE–Credit unions were given some best practices for credit unions to find, win, and keep more loans and members during an America’s Credit Union Conference Discovery session here.
CUNA Mutual Group’s Karim Habib, director of lending products, explained that while disruption has come to the credit union lending space, it’s not just from traditional financial institutions – peer-to-peer lenders, retailers, credit card companies, and other non-bank competitors have actively ramped up their efforts to capture credit unions’ loan business and market share.
So, what are credit unions to do? They must build on the loyalty of their members to find more profitable loans, win more members and business, and keep members’ loans on the books, even in the face of increased competition from new market entrants, according to Habib.
Habib also encouraged credit unions to:
- Master the art of conversation. Anticipate and answer questions thoroughly, seek unique solutions to member challenges, and really listen to members’ needs.
- Conduct proactive financial check-ins. Ask members about major life events, changes to income and expenses, and short- and long-term financial goals.
- Examine credit reports and provide education. Help members understand how to improve their credit scores, save money, and free-up disposable income.
Habib reminded that developing a deep understanding of each member’s unique situation allows credit unions to create customized, competitive loan packages, solidify long-term lending relationships, and helps members protect today and prepare for tomorrow.