Develop and invest in a network based solution that would seamlessly seek to identify a loan solution for every member who requests a loan, regardless of loan type, credit history, loan terms,available liquidity or any individual credit union lending constraints.
A member with the need for a loan does not stop searching for a loan solutions if his/her credit union is unable or unwilling to meet that need. They will simply search out another lender for a solution. Most frequently this lender is a competitor of the credit union who will now have earned some loyalty from that CU member and who will begin to market other financial services to that member and their household.
There are lots of reasons that credit unions cannot meet that member’s need. It could be anything from that credit union having a lack of liquidity to make a loan to a decision that certain types of loans are not part of the credit union lending menu. It could be documentation standards, credit standards or previous experience with the member.
The network solution would endeavor to identify network participants who represent a wide range of appetites for loans that other network participants may not be able or unwilling to make. Participation strategies can allow the network lenders to approve loans that other network participants may deny while still allowing the originating credit union to retain the member relationship. Technology strategies and documentation digitization will assist the process and procedures for this new entity.
Never say “no” to member, identify a trusted network partner who can help you say “yes.”