LAS VEGAS—Business and mortgage lending strategies, new auto lending fraud tactics and consumers’ growing digital demands were just some of the topics covered in day two of CU Direct’s Drive ’19 Conference here.
Thursday opened with keynoter Dr. Elliott Eisenberg providing attendees with his outlook on the economy. Eisenberg, president of GraphsandLaughs and well-known to many in CUs for his quick moving, humorous and animated insights on economic issues, told the meeting he does not see a recession in the very near future, and certainly not before mid-2020, at the earliest, he told attendees.
A panel session addressed uncertainty mortgage lenders face in 2019. Easing interest rates have renewed optimism for refinancing, but stagnant home sales and ongoing inventory concerns remain headwinds in the purchase market, the panel noted. Meanwhile, a wave of automated and data-driven tools are redefining expectations about the borrowing experience and in turn, recast traditional roles for loan officers and other staff, they said.
‘Oxygen for AI’
Stating that data is the “oxygen” for AI within credit unions, Michael Acosta, Western hemisphere data sales lead at Microsoft, told attendees data and AI are becoming increasingly important to credit unions, their members, and the organizations whose purchases are often financed by credit union loans. Acosta shared new approaches to collecting, securing, and harnessing the data that is vital to AI in particular, and digital transformation more broadly.
Frank Mckenna, chief fraud strategist at PointPredictive, reminded the meeting that auto lending misrepresentation and fraud is not always discovered and is often hidden in first and early payment defaulted loans.
“Up to $6 billion in originations may contain misrepresentations that cause the loan to not perform as expected,” said McKenna, who shared insights on the hidden patterns of fraud and described advancements in using AI and machine learning to address this growing problem.
Forecast for 2019
Michael Buckingham, senior director of PIN Auto Finance at JD Power, provided the meeting with an overview of key trends, challenges and opportunities in the automotive marketplace. He reviewed 2018 vehicle sales data; retail vehicle sales, manufacturer incentives, vehicle segment shifts before turning to the outlook for 2019.
Jim Marous, owner of the Digital Banking Report, discussed how critical it is for credit unions to “know” today’s digital consumer and what they expect from the CU. “Look out for them and reward them. Consumers want a personalized experience based on data and insights already available. No longer accepting ‘push’ marketing programs, they want proactive solutions based on their individual lifestyle,” he said.
Marous added that these needs will require financial executives and organizations to be willing to embrace change, take risks and disrupt themselves.
New Milestone for Lending 360
During the meeting, CU Direct also announced its Lending 360 Consumer Loan Origination System has reached a new milestone, as more than 150 credit unions are using the platform to drive both loan efficiencies and originations. The newest credit union to add the platform is $710-million Capital Educators FCU in Meridian, Idaho, the company noted.
“As an industry-leading, comprehensive account and loan origination system, Lending 360 offers dynamic features that streamline the entire loan application process, giving credit unions the ability to greatly enhance loan officer efficiency and member experience. As a result, credit unions and CUSOs are able to gain a true competitive edge in the lending landscape’s fast-paced environment,” CU Direct said. “Lending 360’s powerful, robust account origination allows credit union members to open checking, savings, money market and CD accounts online at any time. With the Lending 360 workflow engine, credit unions have a single platform that automates application processing activities across all consumer lending channels.”
‘Underscores Our Value’
“Achieving this milestone underscores the value our credit union partners see in implementing a LOS technology that helps them grow their loan portfolios and improve the overall member experience,” said Brit Barker, CU Direct’s vice president of credit union solutions. “We’re excited to be working with Capital Educators FCU, helping them gain a competitive edge in the marketplace, and greater market share, by leveraging our platform’s capabilities.”