BY MATT JOHNNER
Simply put, the Law of Attraction is the ability to attract areas of focus into our lives. It is the idea that all laser-focused thoughts and goals materialize into reality eventually. But what if credit unions have unwittingly focused on the wrong things to succeed?
Too often, credit unions view consumers as the biggest source for deposits or fee income, and they fail to recognize the magnitude of the opportunities available to them in small businesses serving specialized marketplaces. As credit unions continue to compete with major banks for deposits, particularly in this rising rate environment, they look for new and creative ways to stand out and help members succeed.
Historically, credit unions have had a strong track record of serving members and engaging with their communities. So in efforts to take that reputation of member service to a new level, credit unions should focus on key differentiators by offering highly specialized member services and serving their communities in unique ways.
In this environment, construction lending is a growing yet underserved sector of the lending industry, and one that has traditionally been dominated by big banks. Recently, however, large financial institutions have taken a more conservative approach to construction lending, which creates a golden opportunity for smaller financial institutions to step in and fulfill this need. It is time for credit unions to focus on niche markets and see how the Law of Attraction can work in their favor.
Meeting the needs of the underbanked and underserved
By incorporating construction lending into their product and service offerings, credit unions can strategically diversify their loan portfolios and capture additional fee income, while also gaining access to the employees of these niche businesses. As there is lower competition among larger financial institutions, and since construction lending is an $11.8 trillion industry, credit unions can capitalize on this underserved yet profitable market.