Five ways to grow your loan portfolio in a slower economy
While opportunities may slow in 2020, these strategies can help enhance loan growth, member retention and the efforts of your staff.
Many economists continue to predict slower GDP growth in 2020 than the previous two or three years. This poses a potentially significant challenge to a credit union aiming to grow its loan portfolio during the next 12 months. However, there are certain strategies that can be deployed to nurture growth in any economic cycle.
Here are five methods to consider when attempting to grow your loan portfolio, even as the current cycle begins to slow.
1. Develop Lending Specialties That Cater to Niche Industries
Expand your service offerings to solutions that cater to specific needs, such as working capital finance, government guaranteed finance or lending to niche industries. Loan portfolio growth may require that your lenders study new markets, or that you acquire new technologies that will support such strategies. These efforts can pay significant dividends for years. The first step is to thoroughly examine your market for existing and emerging industry trends and opportunities.
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