New bank, a missed opportunity for credit unions?

“We need loans.” It’s the common plea among credit unions, with no other details except that loans are needed from anyone that can fog a mirror. Your margin is down by competing on rate against other financial institutions, and loyalty is almost nonexistent because once you get that loan, you’re moving in for the next kill.

But what if you could drive up loan yield AND gain loyalty, without having to promise your firstborn for a little extra padding in your marketing budget? Start with this question:

What group in my community isn’t being properly served by a financial institution?

The first answer may be the underbanked. It’s a noble option, and one you should certainly consider. However if your credit union is risk adverse, there are other niches you can carve out.