By Juli Anne Callis
Navigating the Opportunities on the Horizon for Lenders
It’s been rough waters for the financial services industry in recent years, but turnaround strategies have paved the way to calmer seas. Take a seat in the CU’s prime lookout point for an up-close and personal glimpse into some viable techniques that are leading to smoother sailing.
The financial services industry experienced smooth sailing when the economy was doing so well that the expansion of credit unions and community banks was a matter of simply navigating new markets with new innovative technologies and lending programs.
By 2008, however, financial institutions around the world were forced to quickly increase their lending standards due to the choppy seas and stormy economic outlook for lenders. In the search for a route that would accurately anticipate both the risks and rewards of the future, those at the helm forged new
partnerships and developed adaptive strategies. The turnaround strategies of many financial institutions provide lenders with an excellent view from the “crow’s nest.”
John Tippets is a recognized industry leader having served at the helm of American Airlines Credit as well as skillfully bringing North Island Credit Union through a season of high seas. He shares this tactical advice for directors and management: “Many CUs have done a very fine job in capturing small business loans and then reaching out to serve their employees, sort of a combination SBA/SEG strategy.
The special variation on that which I’ve seen and thought a good one is a targeted approach to the Hispanic markets in the CU community.” Focusing on those local Hispanic business and property owners (and the employees or associated customers) who may not be getting great service from traditional big
banks or from the ‘country club’ community bankers is one of his techniques for calming the waves.