ATLANTA-When it comes to lending in 2012, one person is advising that capturing business loans from the big banks could be the biggest opportunity available.
Kyle Kehoe, VP of sales for CRIF Lending Solutions, told Credit Union Journal that one strategy for credit unions seeking to boost lending this year will be by carving out a niche from the small business loans that big banks either turn down or just poorly serve. Specifically, he said, loans valued at under $50,000, which the banks treat like commercial loans (as opposed to a business loan).
The best way to grow that as a revenue channel, he said, is through utilizing certain CUSOs and websites focused on boosting business loans. "There are several aggregate web-based solutions hitting the market that offer the ability to shop for business loans, and credit unions can tap into that," he said, though he was not able to name any specifically.
Kehoe also suggested that CUs revisit indirect lending.
"That's been up and down, but it certainly seems like some are recommitting to indirect," said Kehoe. "There's revenue there for them to grow, and new car sales are up again this year, so I think that trend will continue."
Kehoe added that being connected to all viable tracks for indirect lending-including vendors such as DealerTrack or CUDL-will be crucial.
But lending offerings won't mean much to potential borrowers if those products aren't backed up by a robust web channel, said Kehoe. As more and more consumers go online for their loan applications, said Kehoe, CUs need to be sure they have a web channel that can offer cross-sell opportunities and decisions. And, most importantly, those things need to be immediate.
Keohoe added that e-signature technology continues to spread, and more and more consumers are looking for integrated decision and loan doc solutions, so CUs should be moving toward being able to offer those services if they don't already.
