As consumers continue to adjust to the current environment, they are eager to get back to normal spending habits. Therefore, with increasing demand prices rising, there is little opportunity to negotiate a better price.
How Can We Increase Lending Revenue at Current Low Inventory?
Let’s look at alternative types of lending. Due to low rates, not just home lending is on the rise, but home remodeling and other lifestyle and merchant lending purchases are also increasing.
Providing your members with the opportunity to refinance their auto, you are giving them a great opportunity to lower their monthly expense which may help them, if they are struggling and not yet returning to work. This is a powerful way to increase membership with a product/service-based marketing campaign.
HELOC – Home Equity Line of Credit
With equity in your member’s home, this is a great time for them to leverage that equity at a lower rate and apply for a HELOC. This could be a great opportunity for members to begin that remodeling project.
Debt consolidation is another option and can be used to decrease rates on credit cards, student loans and other debts. This will help them pay the same amount at a fixed lower interest rate, improve their credit and eliminate other debts sooner.
Merchant Lending Services Offer Fast and Safe Loan Options for Small Business Customers
Small and local businesses are the life blood of many communities across the country. We can provide them with a simple application process, with minimal or no fees, and the potential to offer introductory rates at 0% interest for 6-12 months with loan terms up to 60 months. This is a wonderful way to reach out and support your local merchants and small businesses.
We Are Not Without Options; We Now Need to Tell the Consumer
Millennials and Gen-Z spend most of their time online and are more likely to see a digital ad before they see one on a billboard or television. Millennials especially are more prone to do their research online than previous generations and are more likely to make decisions based on information found on the internet. Millennials are getting married, having kids, and buying their first homes, but you can’t wait for them to find you. It is important to target the demographic to attract them as new members.
Gen-Zers are also getting older, and many of them are reaching an age where loans are taken out solely in their name, or they’re opening their first deposit account. Having information online that offer financial education to credit union members may be a big draw for them, as schools don’t always cover managing loans in their curriculum. Just like Millennials, Gen-Z are mobile-first consumers and would prefer to find the answers they seek online, than with a person, and offering a place where they can learn to understand lending will draw them to your credit union.
Self-Service Apps and Software
Turning your eye towards keeping not just your rates competitive, but your software competitive, is important. Consumers don’t want to wait for your software to take days for an approval or for their payment to process; they want their loan software to move just as fast as their smartphones.
Having an app that runs well on smartphones will also increase your visibility, especially to Millennials and Gen-Z. Both generations do almost everything exclusively online or from their smartphones, and managing loans is no different. They want to feel like they have more control and can make payments anytime, anywhere. Self-servicing apps also ease the workload on servicing centers and branches, especially as we make the transition away from remote work and back into offices.
The Heart of the Credit Union Mission; The Underserved Communities
Turning your attention to underserved communities in your area, who are looking to take advantage of 2021’s low-interest rates, is important to growing your portfolio and membership. There are plenty of large communities of people that feel overlooked and underserved by larger banks. These groups are more likely to be interested in a credit union that offers more loans and programs geared towards them than a larger bank.
The foundation of the Credit Union community is service and this dates back to its infancy and the 1934 Federal Credit Union Act. The role of Credit Unions is to provide secure fair access to financial services, especially for individuals of small and moderate means.