Innovation in Lending
[Guide] 5 Strategies for Loan Growth
June 8, 2021
The events of 2020 triggered major changes to the credit-risk environment and revealed new trends, challenges, and opportunities that will shape the industry for years to come. One of the biggest challenges to emerge for banks and credit unions is growth: deposits have soared and lenders have been racing to catch up.
According to FDIC data, deposits surged $2 trillion in 2020, up 22% in the first half alone and the five largest U.S. regional banks all reported a drop in total loans for the first quarter of 2021. This is drastically different than Q1 2020, where 15 of the largest U.S. banks reported loan growth that outpaced industry gains. The situation is the same for credit unions, the latter of which saw their deposit growth rate rise tenfold in the first half of 2020, while loan growth fell 3.4%.
At a recent credit union executive roundtable, Mike Dill, EVP – Chief Lending Officer at Royal Credit Union said, “This is a big issue for us and we’re kicking around a lot of different technologies and strategies.”
Complicating matters is the fact that the past 14 months have made it harder for lenders to tell who is creditworthy. With the traditional borrower risk picture scrambled, what’s the best approach to grow portfolios safely?
Download our latest guide to discover new tactics and the latest technology banks and credit unions are using to achieve growth.
You will learn how to:
- Develop and execute a successful growth strategy
- Assess new borrower segments
- Leverage technology automation for faster decisioning
- Launch new product lines (safely)
Zest AI team
June 2, 2021