Business Articles

Member Demand Tops List for Credit Unions Offering Business Lending

By Michelle Samaad

June 12, 2007

MADISON, Wis. — The myriad of reasons for credit unions wanting to offer member business loans are mainly tied to member demand.

Findings from CUNA’s 2007 Business Services Survey found that 57% of credit unions surveyed said the No. 1 reason for starting a member business lending program was to be able to offer more services to members. Fifty-four percent said members had expressed interest in such a program followed by 48% of CUs that said they saw the entry as a way to grow loans.

“Members are saying ‘why can’t I bring my business [to the credit union],” said Doug Benzine, vice president of CUNA Research and Advisory Services, who shared some of the survey findings at a CUNA Webcast last Thursday. “They’re tired of being merged out [through bank consolidation].”

Other reasons credit unions gave for starting a member business lending program were a new source of net interest income (21%), core deposit growth (20%), new sources of fee income (5%) and interestingly, only 2% said it was a way to provide new capital for the community.

Reprinted with permission from CU Times

Return to Business Resources

Credits Unions Seeking Business Lending Talent from Within

By Michelle Samaad

June 7, 2007

MADISON, Wis. — While it appears that many credit unions are recruiting from community banks to staff their business lending departments, most are choosing to seek talent from within.

That is one of the findings from CUNA’s 2007 Business Services Survey, which was sent out to nearly 2,000 credit unions. Of the 204 responses received, 47% CUs indicated they recruit internally while 35% turn to community banks. Twenty-six percent said they seek professionals from state-wide financial institutions and 27% indicated recruiting from other areas.

Doug Benzine, vice president of CUNA Research and Advisory Services, spoke this afternoon at a Webcast highlighting some of the survey’s findings. Benzine said when CUs hire someone from the banking sector, they tend to get someone who has expertise in just one area. While NCUA requires staffers to have just two years of business lending experience, Benzine suggested CUs should seek out professionals with at least 10 years under their belt.

In other areas of the survey, 57% of respondents said they started their MBL program slowly, in house and gradually added more services, 16% subscribed to a CUSO, 15% invested in a CUSO, 10% started in house with a complete portfolio of products, 8% started through loan participations and 7% indicated other means.

Reprinted with permission from CU Times

Return to Business Resources