In a period of significant global economic instability, the financial services sector is going through a significant period of disruption. This has been especially challenging for credit unions, who need to leverage a variety of methods to keep cash flow as stable as possible. Thankfully, there are ways to use this newfound disruption to optimize revenue streams moving forward. They require organizational leaders to keep a few key things in mind.

As a credit union, there are a wide range of opportunities that can be leveraged in terms of more effectively operating your lending process. Having said that, not all methods work equally well for each organization. Only by making an effort to fully understand your audience will you be able to come up with the techniques that fit best given the circumstances.

In an age of two-day Amazon delivery, instant Google search, and personalized lending offers through Credit Karma, your members are no longer satisfied with a slow back-office lending process that takes days to weeks. Instead, credit unions must modernize their lending with a digital loan origination system and powerful analytics.

The cold, hard truth is lending isn't what it used to be. Everything has changed in recent years, forcing lending institutions to change too. As rates continue to increase and the financial landscape keeps evolving, credit unions must acquire new lending strategies to remain competitive in the industry. So, how should CUs adapt to these rapid changes? One of the most critical things you can do is take advantage of data analytics, which can help identify and target the right individuals based on a number of factors, from behavior and demographics to specific life events. In this article, we'll outline what's currently trending in the market and how your credit union can effectively harness the power of data analytics to benefit your members and bottom line.

From the beginning, your credit union has dedicated itself to being a community development financial institution with a sincere focus on serving members with excellence. But did you know that diving deeper into data analytics could help you succeed in that mission? In addition, data analytics can enable you to grow your members and if interested, help you to acquire or maintain your CDFI certification, all while acquiring staff buy-in. Credit unions of all sizes can gain incredible insights from their data and use it to make wiser business decisions. Let's outline how you can use this technology to your advantage to save time, money, and effort.

Today, data is at the core of every company, and it's readily available for use. This influx of data has forced financial institutions, including credit unions (CUs), to recognize data's importance and develop their own data strategies that consider its collection, storage, analysis, and utilization. Although data can impact everything from member experience to recruitment, it can also prompt lucrative lending opportunities. In this article, we'll be outlining how your CU can use data analytics to make wise lending decisions that benefit you and your valued members.

Within the last few years, we've seen many financial institutions rely heavily on traditional data as they've been making various credit decisions. Recent tumultuous times have also caused businesses and consumers to lose valuable revenue. Meanwhile, existing data models that were originally intended for periodic declines (instead of a complete economic standstill) have proven not to be as relevant or foretelling. These dramatic changes in both credit and consumer behavior have caused lenders to seek new data and earlier warning signs. This is where analytics come in.

As a credit union, one of your goals should be to increase the number of auto loans you acquire each year. And if you've been monitoring the market, you've probably noticed the significant increase in car payments, which has doubled since 2021. As of 2022, auto-related loans account for nearly 10% of all consumer debt in the U.S., which means a wealth of opportunities to boost your credit union's ROI and help people save!

The past 18 months have brought unexpected challenges to credit unions of all sizes. The severity of these challenges varies by credit union and some peer groups were more affected than others. Digital transformation became a real topic, instead of wishful thinking or “clickbait” for marketing companies. We quickly learned which credit unions were prepared for a digital transformation and those that were not.

Credit union loan balances are growing steadily, increasing from 5.3% in 2020. Experts predict loans to escalate 9% each year in 2022 and 2023 after the economy returns to normal, infrastructure expenditure begins, and unemployment levels decrease. As loan balances continue to rise, credit unions are searching for strategies to increase direct lending that will boost profits and set the stage for cross-sales.