By Mike Smith, CUBG VP/Senior Business Services Officer In today’s challenging economic climate, credit unions are actively seeking new ways to achieve growth and profitability. For many this means taking a fresh look at promoting their business services program, with an eye toward building long-term relationships versus generating individual loan transactions. At CU Business Group’s…
From Nick Reynolds, Vice President/Credit Services Manager The risks associated with business lending differ significantly from those associated with traditional consumer lending. While consumer information is still an important part of knowing your member, the types of risks associated with commercial loans tend to be more varied and wider in scope. This article is one…
From Larry Middleman, CUBG President/CEO When CUBG conducted a focus group with business owners near the top of the small business pyramid, the responses reinforced a long-held truism: Not every business needs to borrow money, but every business needs a strong depository relationship. The business account opportunity is one that is frequently overlooked by credit…
Small business is growing once again in the U.S. Following the 2008-09 recession, the number of businesses in the U.S. with fewer than 500 employees fell precipitously. By 2013, small business had once again rebounded to 2009 levels. This spells opportunity for credit unions. Credit unions have long gravitated toward investment real estate as a…
One way to tackle the sophisticated small business market is to even the playing field with commercial banks by offering a richer portfolio of business loan products. According to a 2013 Raddon Financial Group study, the majority of small businesses with annual sales of $5 million and over are active users of credit cards. Many…
by Nick Reynolds, VP/Credit Services Manager The risks associated with business lending differ significantly from those associated with traditional consumer lending. While consumer information is still an important part of knowing your member, the types of risks associated with MBLs tend to be more varied and wider in scope. The credit union industry is expanding…
From Larry Middleman, CUBG President/CEO According to the 2015 Temkin Trust Ratings, credit unions collectively rank #1 in trust across all industries, ahead of such recognized national brands like Trader Joe’s and Amazon, and well in front of banks. In terms of the business market, credit unions have done a good job of serving “micro-businesses”,…
From Claire White, CUBG Deposit Services Officer On July 11th, new FinCEN rules clarifying and strengthening customer due diligence requirements went into effect. Credit unions will have until May 11, 2018 to comply with the rules. The new rules contain explicit customer due diligence requirements and include a new requirement to verify the identity of…
From Larry Middleman, CUBG President/CEO Today, credit unions face a unique opportunity to make major strides in the business lending market. Early in 2016, the National Credit Union Administration (NCUA) released a massive overhaul of its Member Business Lending (MBL) rule, upending the agency’s long-held “prescriptive-based” approach and introducing new, more flexible “principles-based” standards. Highlights…
by Nick Reynolds, VP/Credit Services Manager The risks associated with business lending differ significantly from those associated with traditional consumer lending. While consumer information is still an important part of knowing your member, the types of risks associated with MBLs tend to be more varied and wider in scope. The credit union industry is expanding…