Develop Business, Close Loans, Keep It In The Family!

Presented by:Sean McDonald

Session Goals

• Discuss the current state of credit union lending.

• Identify latest trends and tactics in lending.• Identify the target market that can provide the

best results and help your credit union reach its goals.

• Discuss specific ideas for loan campaigns.

To Whom Shall We Lend??

• The ideal borrower……• Has an A++ credit rating• Has a high-income job• Owes nothing to anyone else• The average credit union borrower…..• May have some “blips” on the credit report• Is usually middle to upper middle class• And should be in the Gen ___ demographic

CU Loan Statistics (as of 9/2014)

• Overall loan growth + 10.0% • Credit Cards + 8.3%• NEW Auto +19.4%; USED + 12.2%• Average Loan Balance - $13,195• Total CU Loans - $706 BILLION

(Consumer)Source: CUNA

Credit Union Loan Portfolio

First Mortgage41%

Used Auto19%

Other RE12%

New Auto10%

Unsecured Revolv-ing

11%

Other Loans6%

Auto Lending Market Share

36.2% in 2013

New Vehicles $72 billion outstandingUsed Vehicles $128 billion

Source: Automotive News (March 2014)

What do the numbers tell us??

• Lending is NOT dead!• Consumers DO want and need loans.• Credit Unions ARE still lending.

• So why are so many credit unions still hurting for loans??

Some Reasons

• Not enough emphasis on growing loans.• Not explaining to employees WHY loan

growth is so critical.• Adherence to outdated loan standards and

policies.• Taking money away from marketing and

business development.

Trends and Tactics

• Website redesign that leads people to lending products.

• DIGITAL/MOBILE.• Incentive campaigns.• Social Media*** - but how to use SM?• Scouring and analyzing the EXISTING member

base (DATA)• And…….

The Tactic Used By Credit Unions That Have Enjoyed The Best Loan Growth….

• Would anyone care to guess?• If done properly, can be a highly effective

tactic…..• Last chance to guess……..

• EFFECTIVE CROSS-SELLING

The Most Successful Cross-Selling involves….

• Building Relationships with existing members.• Having CONVERSATIONS.• Asking GREAT questions.• Listening to the answers.

The Most Successful Cross-Selling involves….

• Website design and strategy that leads people to lending products.

• Making appropriate suggestions to members.

• Recognizing Opportunities.• Mitigating challenges….NOT

OVERCOMING OBSTACLES….

Are We Asking GREAT Questions?

• What makes a GREAT question??– GREAT questions start conversations – they don’t

end them.– GREAT questions require more than a “one word”

answer.– GREAT questions get people thinking.– GREAT questions lead to more loans.

THE ART OF LISTENING

• Are we TRULY listening to our members?• Do we know what they need?• Are we able to “read between the lines?”• What AREN’T they saying?• How are we processing the information that

the members are giving us?

IS IT APPROPRIATE?

• Sometimes we get caught up in the idea of cross-selling just for the sake of cross-selling.

• The adrenaline is rushing. You’re on a roll!• WAIT – did you stop and think about whether

or not a service is appropriate for the member?

• Have we identified the right loan products for the right target market?

The Power of VALUE

• W.I.I.F.M.• Must clearly illustrate the VALUE and BENEFIT

for the member. How will this help THE MEMBER?

• But it is also CRTICAL that you identify and communicate how achieving the desired results will impact the CREDIT UNION!

DIGITAL/MOBILE/SOCIAL

• This is no longer considered the “future.” It is the “NOW!”

• Have contests, conversations, provide information!

• Did I mention Facebook and Twitter yet?• Have discussions with your core provider about

how they can help you in these efforts.• If they can’t, it’s time to find one that can!!!!!!!

Loan Promotion Ideas…

• The “One Day” Loan Event• Refinance Offers• Why Pay More??• Financial Independence• Labor Day- Why LABOR at All?

• Let’s hear from YOU!!!

THANK YOU!!!

Your Full Potential, LLCStaff & Management Training

ConsultingStrategic Planningwww. YFPTips.comsean@yfptips.com

(201) 920-9328