Loyal lending: Find, win, and keep more loans and members
If you have been watching your mailbox and monitoring your inbox, listening to the radio, or watching late night infomercials, it’s clear: disruption has come to the credit union lending space, and not just from traditional financial institutions. Peer-to-peer lenders, retailers, credit card companies, and other non-bank competitors have actively ramped up their efforts to capture your members’ loan business – and your market share. These disruptors use technology-driven business models that allow them to move money at a lower cost. By aggregating customer data and finding ways to monetize it, they are able to undercut the competition.
So, what’s the good news for credit unions? Credit union members are loyal. And with the implementation of a few best practices, your credit union can build upon that strong foundation through lending to grow your loan portfolio, even in the face of increased competition from new market entrants.
In order to find more profitable loans and opportunities, win more members and business, and keep members’ loans on the books, start implementing these strategies:
- Mine members’ credit reports and educate them on how to improve their credit score, save money, and free up disposable income. This will help you create customized, competitive loan packages to offer your members and build upon your trusting relationship.
- Conduct proactive, informative financial check-ins with members. What life events have happened to them? Any significant changes in income and expenses? What are their short and long-term financial goals? Developing a deep understanding of each member’s unique situation will help solidify a long-term lending relationship.
- Master the art of conversation with members in order to create a comfort level throughout the loan process. Listen to their needs. Anticipate and answer specific questions thoroughly and accurately. Seek specific solutions to their challenges. This will help steer the process to a mutually beneficial outcome for all parties.
And don’t forget the most important aspect – your credit union’s culture. It all starts with building the right culture to empower your team to maximize loan growth opportunities. Build a member-centric culture with:
- Vision: A clear vision combined with clear guidelines and expectations ensure everyone is working towards the same goal.
- Resources: Ample and effective resources enable staff to deliver on expectations and execute the desired vision.
- Workforce: Staff need the right understanding and skills to implement the desired vision.
- Processes: Effective processes show staff a consistent experience both internally and externally for members.
- Reward: Recognize and reward team members who strive for excellence.
Most importantly build and believe in a member-centric, performance based culture in order to find, win, and keep more loans and members.