Why The ‘Two-Legged Lending Stool’ Isn’t Enough To Serve CU Membership
Recent CU Journal Views and Opinions writers have correctly addressed the need for credit unions to maintain relevance with their membership. One writer suggested we “wake up and smell the coffee.”
I’m reminded as well of Credit Union Journal’s excellent coverage last year on the issue of the status of unsecured lending within the credit union industry these days.
In the last year we’ve all observed loan growth stagnation or worse within those lending institutions where their prior growth was heavily dependent upon mortgage and auto lending and not so much on unsecured lending.
Members or potential members are not well served by lenders with such a two-legged lending stool. Many of these folks want and need a resource that delivers to them signature loans at credit union rates. I’ve heard from some that they feel that these lending programs are labor intensive and of a higher risk. Maybe they’re afraid of what their examiners might comment.
Consider now, putting out the three-legged lending stool and beginning to enjoy the increased business, profits, and the fine aroma of a fresh coffee.
Mark McCormick, CEO
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