The credit union industry has significantly increased its volume of personal loans to near-prime and prime members over the last three years.

But online peer-to-peer lenders and other fintechs have dramatically outperformed all lenders for this market segment, according to a 2016 TransUnion analysis.

As a lending specialist and a credit union member for many years, I was impressed with my recent peer-to-peer lending experience. Within a few minutes of submitting the easy online application, I was approved for a personal loan at a 5.39% rate with flexible payment options.

The funds were in my credit union checking account the next day.

Even with Lending Club’s recent difficulties and with impending regulatory oversight of fintech lenders, it’s dangerous to concede this niche to fintechs.

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