There is a constant flow of outlandish stories pouring out of American universities. Kids who can't figure out how to cook an egg, sew a button, or "adult" in any way. Parents who are calling college professors defending their kid's sub-par mid-term efforts because the kid called them crying. These "helicopter parents" have tried so hard to protect their children from the big, bad modern world, that they've handicapped their growth and independent success to an embarrassing level. Are Credit Union leaders doing the same thing to their members?

We were recently featured on CUInsight for our article, Non-Traditional Lending Can Lead to a Healthy Member Focus. In the article, Fred Dalit, CEO of the Hawaii-based Honea Federal Credit Union was highlighted for his unique view of member saving and lending. Honea FCU members, in general, save heavily and tend to avoid taking out loans. This created a paradox for the CU: After all, financial institutions were created to lend money, and interest income is typically their main source of revenue. This drove the credit union to seek out participation lending on a national level, and in turn provide member services that are tailored to the makeup of the member base. Dalit is a big proponent of participation lending and has used the program at his credit union to generate income they were otherwise lacking, thus using the funds to focus on his members' savings habits.  

https://flexcutech.com/products/operations/The ultimate key to success lies in an equation:

Income > Expenses = Success

While there is always a human element to consider, there is a lot of science and math in running a credit union. Sometimes we need to look at the fundamental facts for answers to complex problems. You need to improve processes so your credit union operations run efficiently, because inefficiencies cost you money. While credit unions are known for their human focus, now and then we need to get back to the known variables to determine the unknown ones, and find a solution. Let us show you how to apply the scientific method to improving your credit union member experience. 

The new Current Expected Credit Loss (CECL) accounting standard for banks and credit unions of all sizes is set to go into effect in 2020 for SEC registrants, and 2021 for all other banks and CUs. The new standards in credit union regulations are going to be both a blessing and a curse for many small to mid-sized credit unions. Now more than ever, CUs are sitting on mounds of data about their members and accounts, but many struggle not only finding the data from disparate sources, but also in making sense and gaining actionable insights from it. The reporting required to comply with the new standards may pose a challenge to CUs, but is also an opportunity to finally put that data to good use. Harnessing data is no longer an option for the C-Suite. These new requirements can be used as a spring board to develop a competitive advantage in credit union lending.

A credit union loan officer's position with members is unique. Members are reliant upon the loan officers approval for needed funding, whether it be for a boat, home, car, or small business loan. Yet, much of the information loan officers use is reliant upon the member's credit history. Credit reports receive a lot of attention, but many members still don't understand some of the basic factors that impact their credit score. These items ultimately impact your ability to approve and process their loan in your credit union lending software. Ideally, your Loan Origination Software should automatically import credit report obligations, making the process simple for loan officers. However, as the loan officer role evolves into a trusted financial advisor, educating your members on the basics of credit reports and credit bureau terminology is a great first step in helping them understand the process and where they can make an impact on their credit score. Here are 25 terms from Experian's extensive glossary of basic credit union bureau jargon:

Loan officers should strive to be more than form pushers and evolve to be viewed as members' financial advisors. When you have a loan origination system that provides a holistic view of your members' financial data, you are more apt to position yourself as an advisor, increasing the opportunities to provide additional member services. Here are 12 tips to give members that will help put them into a better financial position:

Everyone loves a warm, sunny day, but there is a threshold for tolerance before it becomes too hot to handle. As the summer sun cranks up the heat, people seek ways to escape the extreme temperature. People also love the convenience of credit cards and are willing to pay interest to buy now, but they too have a limit on how high you can crank those interest rates up on your card products before they run for alternatives.

Your loan officers perform a complex and critical function for your credit union. They must be experts on the full suite of loans you offer, know qualifying requirements and assess the financial condition and overall risk of the applicant. Their work, if done properly, generates significant revenue for your organization, so it's important to give them the support they need. Here are five common hurdles CU loan officers face and how you can help eliminate them.

The job of Chief Lending Officer is no small task. A key position, the CLO usually reports directly to the CEO, responsible for the development, management and oversight for credit union lending in the consumer, mortgage and member business lending programs. In other words, they are the person largely responsible for the long-term survival of your credit union. Not just "the numbers man/woman" anymore, this is a job comprised of sales, consulting, management, and now more than ever, technology.