Software Behind CU's Increase In Biz/Ag Lending
An "interactive, proactive" relationship with borrowers is enabled in part by credit risk
According to Shawn Good, branch manager at Mennonite Savings and CU (MSCU), THE 114,000-member CU's
"Our small and medium enterprise members are very bankable, and other institutions would be happy to have them,"
Indeed, many credit unions in the U.S. and Canada have set their sights on cultivating commercial lending as the
ClearCredit, piloted at MSCU for three months on a web services platform by Kitchener, Canada-based Covarity,
How The Process Works
MSCU opened up the product to general business clientele in January.
MSCU's business borrowers upload their historic and month-to-month financials to ClearCredit's database to create
"Members don't need to generate a paper form and drop it off on my desk," Good said. "Instead, the information is
Real-time updating puts to shame the typical paper-based process, said Good.
"Commercial lending is typically reactive based on last fiscal period, as opposed to what's happening today," he
With growing SME's in particular, Good continued, credit unions need to pay attention to changing financial winds.
With ClearCredit, business members are able to make educated choices in considering lines of credit. Borrowers
"The tool will do ratio analysis and trending for members," he explained. "For example, borrowers can see the
Good's interactive relationship with his business members leaves everyone "feeling like we're on the same team," he
In addition, the technology saves time required for the lending process, recently putting Good and a business
Through real-time risk analysis and alerts, business members and MSCU are able to head off account breaches at the
"Under the lender summary function, I can look at all the accounts that are offside," he explained. "Then, through
"My expectation would be that ClearCredit will help us more quickly identify problems that might arise," Good said.
ClearCredit is available to CUs at $10,000 for setup, plus a $60 fee per account per month.