Innovation and collections – Two focus areas in your response to rising rates
Thoughts on how to approach each
What can credit unions do to best manage a rising rate environment like the one we’re experiencing now? Two good steps are innovating and honing collections processes.
Plan to Innovate as Rates Rise
“We’re still planning on higher loan demand and overall growth,” reports Jamie King, SVP/credit and special loans at $18 billion Servus Credit Union, Edmonton, Alberta. That’s partly due to a diversification of loan product offerings in line with a digital transformation. “We expect to achieve market-leading growth by being easy to do business with,” he explains.
What new loan product offerings? “Without giving away too many trade secrets,” King says, “we are working through or implementing programs in operational financing, Shariah-compliant lending, franchise banking, etc. These are new to Canada. There are lots of exciting opportunities for the future.”
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