The lending landscape has changed dramatically because of rapidly advancing technology, access to information and consumer expectations. Lending is no longer about terms or rates – members demand control and seamless user experience. Credit unions must adapt to these paradigm shifts to remain competitive.
Credit unions must also get strategic about their marketing to let members and nonmembers know the credit union is there for them. As Apple and Nike have proven for decades, marketing cannot simply make the product but can create a community around that product. Marketing is a necessity to retain and grow membership.
Financial institutions need only peek at the FinTechs to see how and what they’re doing to drive growth. A quick look at Forbes Fintech Top 50 in lending illustrates the shift in the consumer credit marketplace. Many FinTechs are seeing success because of their customer-centric mentality, allowing customers to link together multiple sources of data from bank accounts to tax returns to pay stubs for a better experience.
To leverage this transformation, credit unions must adopt a member-centric mentality. Using data and allowing systems to work together provides more holistic views of individual members, so appropriate products can be offered, ultimately extending the member greater transparency and control. The analytics to be gained will also help the credit unions derive greater insights into member behavior and act on those insights. The Financial Brand reported that the first thing members are looking for is ease of use.
While improving the experience to existing members is paramount, member growth is critical. Credit unions have been successful with indirect auto lending as part of their Loan Origination System, proving profitable, member-growth boosters for both credit unions and auto dealers, as reported by Dealer Marketing. This model has increased lending, as well as drawing in new members.
The Allegro Lending Suite includes components that allow financial institutions to participate in indirect lending through car dealerships or any other service provider, such as orthodontics or musical instruments. Additionally, our Conductor platform provides CUSOs the same access. DigiDocs rounds out the comprehensive suite, allowing all paperwork to be signed and shared electronically. The Allegro suite creates efficiencies in an easy-to-use platform that help credit unions compete in the rapidly changing financial services market.
Will McGregor , CEO