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.

Today's credit unions face a unique set of challenges as member growth has consistently declined since 2018. To further compound this problem, the average credit union member age in the U.S. is 53, which means they are or have already exited their prime borrowing years. Together, these two statistics underscore the importance of attracting younger members.

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.

There is no doubt that major shifts have taken place in the mortgage market over the past couple of years. An increase in competition and the transformation to digital mortgage lending solutions have had a huge effect on how credit unions and other institutions that depend on mortgage lending do business.

Competition is high when it comes to purchasing a home. Prices have increased due to the pandemic, making it a seller’s market. An increase in demand and a decrease in inventory means buyers have to act fast. Multi-offer scenarios and bidding wars have become the norm. Buyers watch prices rise and see their offers rejected. Credit unions must find ways to pave an easier path for home purchasing members. One solution is transforming the home buying experience with best-in-class technology.

With the lowest mortgage rates in years, it’s no surprise that mortgage originations and refinancings are soaring around the nation. This is good news for credit unions. However, advancement in digital technologies and the rise of fintech companies into the lending space also means that the competition in the mortgage lending market is as tough as ever.

Credit unions know their members--all 125 million of them and counting--better than anyone, and the right analytical tools and market intelligence can help your credit union gain market share in a competitive mortgage environment. It is always a good time for CUs to expand their offerings and use technology to streamline the process.

With a booming housing market and the challenges facing credit unions to keep up, simplifying the home buying process is critical to delivering outstanding member service and growing the loan origination business for your credit union.