Do you have the guts?
From Bill Merrick:
Bill Vogeney poses a timely question: Does your credit union have the guts to forego some loan business now to help members make smart long-term financial decisions?
Vogeney, Ent Federal Credit Union’s senior vice president/chief lending officer and CUNA Lending Council vice chair, believes both credit unions and members often would be well-served by one word: No.
Vogeney writes on Credit Union Magazine’s website that, despite the many hard lessons learned from the Great Recession, members are still making poor financial decisions.
And he cringes when he hears phrases such as, “There’s never been a better time to buy a new house or car!”
“That’s not advice,” Vogeney says. “It’s sales puffery. Today may not be the best time to buy a house for many first-time buyers, regardless of the near-historically low mortgage rates.”
That’s because unemployment nationwide remains at 9%, new job creation lags the economic recovery, and many housing markets continue to experience declines.
The long-term path to success, Vogeney believes, is offering unbiased financial education and advice to build long-term member loyalty—and create smart consumers.
That’s a bold, refreshing view given many credit unions’ shrinking spreads and declining loan volume.
Do you have the guts to forego loans that aren’t in members’ best long-term interests? Cast your vote on Credit Union Magazine’s website and leave a comment on this post to share ways your credit union is helping members become smarter consumers.
Bill Merrick is the Senior Managing Editor for Credit Union Magazine at the Credit Union National Association.