ARLINGTON, Va.—What might the future of lending may look like in a post COVID-19 world?
Allied Solutions Senior Vice President of Strategic Initiatives Charlie Peterson led a panel discussion during NAFCU's State of the Industry event that covered that topic and others, including what will be the effects of increased digitalization on lending.
Peterson was joined by Vince Pennisi, Navy Federal Credit Union's chief lending officer, and Jeff Ernst, Members 1st FCU's senior vice president of consumer lending and card services.
According to NAFCU, when discussing the future of lending, Pennisi noted that "from 2020 to 2021, the entire financial services industry has faced unprecedented challenges." Going forward, credit unions must go "back to the basics of truly understanding who [they] are lending to, but [they] now need to layer on a set of technological tools."
Ernst echoed Pennisi's comments, NAFCU reported, by noting that "[credit unions] need to be flexible. [Our industry] must match our products with what the pandemic has thrown at us. Liquidity will be an issue, but it will slowly go away."
The Advice
Peterson, Pennisi and Ernst concluded the discussion by noting several key takeaways, including this advice:
- Focus on building the tools that members need digitally
- Manage risk well
- Focus on unbalanced risks
- Fully understand the needs of your members and meet them