What would credit unions like to improve about their MBL programs?
While credit unions have continued to experience growth in traditional lending areas, many are also eager to grow their member business lending (MBL) programs. Others may be simply deciding to create a MBL program of their own in 2014.
Loans in this category are appealing to credit unions because they typically carry a higher interest rate and higher dollar-weighted average loan amount as compared to other options. Plus, larger banks aren’t typically interested in this market, so credit unions tend to compete with only community banks. With the millions of small businesses in the U.S., there is plenty of opportunity for growth. Of course, these loans usually carry more risk since the loan amounts are higher.
During a recent webinar, How to Manage Risk in Member Business Lending, attendees with a MBL program were asked what they would like to improve about it. Just over 50 percent noted improving risk management, while almost 45 percent mentioned increasing loan volume.
To learn more about how to take advantage of growth opportunities, manage strategic risk and overcome regulatory challenges in the New Year, register for the webinar, 2014 Outlook for Credit Unions – Managing Risk and Embracing Opportunities.
For more information on common areas of risk associated with member business lending, download the whitepaper, Member Business Lending Landscape: Managing Risk & Opportunity.