Consumer lending

CUs in both states surpassed total asset milestones, but many business lines are growing at a slower pace than they were one year ago.

A recent investigation found that institutions taken over by the National Credit Union Administration “are often the least willing to work with borrowers struggling to afford their loans.”

CUs in the Keystone State saw loan balances rise by 8.5%, while membership rose more than 3.3% to top 4.2 million.

Sensing a profitable opportunity in an underserved market, a variety of companies — ranging from traditional banks to fintech startups and even Amazon — are rushing into selling secured credit cards and other products designed for consumers with poor or thin credit.

Membership continues to rise across the Wolverine State, though at a slower pace, but lending overall is on the decline.

The agreement is expected to solidify a lending partnership whose status had been in doubt for more than a year. But it raised as many questions as it answered.

The digital bank has grand ambitions for its new student loan refinancing platform as it looks to finally turn a profit for its parent company, Customers Bancorp.

The legislation, which passed a key test in the state Senate on Wednesday, is the product of a compromise between consumer advocates and some lenders.

Visa’s chief economist recently warned that fintechs are disintermediating banks’ credit card businesses with instant access to installment loans. Now Visa is looking to disrupt the fintechs by giving issuers a way to do the same.

Offering secured credit cards can help a credit union build loyalty with members but this product line can be difficult to successfully manage.