FinTech digital lenders doubled their market share in the Personal Loans category from 22.4% in 2015 to 49.4% in 2020 (Experian study1). A market share gain which came at the expense of traditional lenders - Credit Unions and Banks.
To slow the continued erosion, Credit Unions need to consider next generation lending platforms and make them available for member use.
Such platforms can transform a Credit Union’s lending economics in 4 ways:1. Accelerating direct loans (More of the profitable loans)
2. Decrease adverse actions (Better customer relationship)
3. Improve operational efficiency (Lower costs)
4. Increase cross-sell loans and increase share of wallet (Member relationship expansion)
This white paper goes into great detail on how these four wins can be realized.