For CUES member Marty Pell, CIE, SVP/chief lending officer for $3.2 billion Coastal Federal Credit Union, Raleigh, North Carolina, the economic landscape is top of mind when it comes to the future of lending.
“We’re late in the cycle,” Pell says. “But as credit unions, are we prepared for a potential slowdown? What consumer behaviors or governmental policy shifts will impact our business? We must be poised to take proactive steps.”
When Pell thinks about the shifting economy, he considers:
Asset quality. When delinquency naturally increases as part of the economic cycle, the dynamics change from growing to protecting the portfolio. “In advance of a recessionary environment, determine which loans have historically performed the best in such scenarios and compare those to your own loan portfolio,” he advises. “See how the portfolio structures align. If your portfolio lacks the performing loans it needs, … adjust your strategies.”
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