NEW YORK-Given the dearth of non-interest income sources, and with investment income at all-time lows, Jim Merrill noted credit unions' primary bottom line booster remains lending.
Merrill, SVP at cloud-based lending technology provider LendKey, told Credit Union Journal lending is "the only way" to build a credit union's bottom line in today's environment.
"Partnering with an organization that can provide a model and infrastructure to drive positive lending results-not just in the traditional mortgage and auto arenas but also the lucrative private student lending sector-can foster a diversification of a credit union's portfolio," he said.
According to Merrill, following such a proactive practice can provide CUs with expanded lending capabilities well beyond what they are able to generate from their existing membership base. He said CUs, with help, also can drive more lending opportunities through originations and purchasing of participation loans.
"With lending currently being the primary channel to boost a credit union's bottom line, there are ample means to achieve this goal with a lending technology provider helping create the path to sustainable profitability."
