22 Minutes in Lending: Conversations about Credit Unions, Fintech, and Future of Finance

On this episode, host Vince Passione is joined by Dr. Brandi Stankovic, a strategic advisor to credit unions, focusing on risk, growth, profitability and leadership. The no-holds-barred conversation challenges credit union leaders to look internally first, for everything from fintech and innovation to leadership succession and their institutional strategies to achieve long-term financial sustainability.

Key takeaways:

(1:38) Credit unions don’t have the luxury of ignoring the fintech market, competition and consumers demand innovation.

(2:06) As much as credit unions need to innovate, there’s also a need for core service providers to undertake digital transformation.

(4:38) Even with 26,000 fintech to work with, credit unions need to do a better job working with their existing partners and giving them a chance to improve and upskill their services.

(8:05) Credit unions need to focus on the behavioral habits of their members, and those change by age and demographic.

(9:45) There’s a balance to be struck between serving existing members and innovating to attract and engage new members.

(12.51) Despite credit unions focusing on securing newer, younger members, only 3% participate in student lending.

(16:05) Credit unions need a clear vision of the need they’re solving. They can’t be all things to all people.

(18:48) Retiring credit union leaders should retire now and give internal candidates a chance to learn on the job.

(20:28) The three things credit unions should be optimistic about for the last half of 2024.

Resources Mentioned:

• https://www.cuna.org/about/cuna-system-providers/governmental-affairs-conference-sponsorships.html GAC (Governmental Affairs Conference)
• http://mitchellstankovic.org/innovate/#underground Mitchell Stankovic Underground
• https://www.lendkey.com/lend/ Student Lending
• https://www.sofi.com/ SoFi

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show and be sure to subscribe so you never miss another insightful conversation.

#CreditUnions #Lending #CDFI #PeopleHelpingPeople #Fintech #Leadership

On this episode, host Vince Passione is joined by Shirley Senn, Chief Consulting Officer at CU Strategic Planning, a Callahan company, for a deep-dive into the CDFI program: How it can strengthen credit unions, what's required to achieve and retain a CDFI designation, and how it ultimately benefits credit union members.

Key Takeaways:

(2:35) The criteria for CDFI designation - for credit unions, banks and VC funds.

(5:52) Credit unions can use CDFI Financial Assistance grants to enhance reserves and increase lending processes.

(11:35) New criteria and requirements for CDFI designation that every existing CDFI has to meet.

(15:06) How and why CDFI credit unions continued to lend through the liquidity challenge of the last two years.

(17:36) Ways to leverage CDFI grants to support programs like ITIN lending or financial counseling.

(22:34) Overlooked opportunities for credit unions to expand their deposit-base.

(24:58) CDFI credit unions need to look more broadly at partnership opportunities to deliver their mission.

Resources Mentioned:

CU Strategic Planning

www.custrategicplanning.com

Callahan

www.callahan.com

Guadalupe Credit Union

www.guadalupecu.org

Community Development Financial Institutions (CDFI) Fund

www.cdfifund.gov

Military Annual Percentage Rate

www.consumerfinance.gov/consumer-tools/educator-tools/servicemembers/military-lending-act-mla/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnions #Lending #CDFI #PeopleHelpingPeople

On this episode, host Vince Passione is joined by Tony Boutelle, CEO of Origence (formerly CU Direct). Tony shares insights into the evolution of auto lending and the strategic shifts in the credit union sector. The discussion delves into pioneering work at Origence, touching on the integration of technology and the future of finance in the auto industry.

Key Takeaways:

(01:32) The early days of fintech and how CU Direct was a disruptor in the auto lending space.

(02:13) The strategic advantage of having a single platform for numerous credit unions and dealerships.

(03:49) The incubation of DealerTrack at JPMorgan Chase and its role in transforming auto finance.

(07:53) Origence’s back-office solutions and the role of automation and AI in processing loans.

(09:05) Tony outlines the vision for Origence’s expansion into direct lending and account opening.

(16:23) The challenges of 2024, including liquidity and loan availability for credit unions.

(23:32) The impact of direct and online car sales models on traditional auto dealerships.

(28:03) Collaboration with Tesla and the establishment of a finance arm at Origence.

(35:15) Predictions for the future of auto lending and credit unions’ role in a changing economic environment.

Resources Mentioned:

Tony Boutelle - https://www.linkedin.com/in/tony-boutelle-4912a613/?trk=public_post_follow-articles

Origence - https://www.linkedin.com/company/origencecompany/

DealerTrack - https://us.dealertrack.com/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnion #Lending #Fintech

On this episode, host Vince Passione is joined by Gary Lewis, Senior Managing Director of Lending and Deposit Solutions at Jack Henry. Gary discusses the impact of AI on the financial services industry and strategies for navigating market cycles.

Key Takeaways:

(02:15) Having a long-term strategy is crucial for handling market cycles and managing liquidity to fund loan demand.

(06:45) Branches still play a role by allowing customers to seamlessly transition between digital and in-person interactions.

(10:30) Technology should enhance relationships and meet customers' modern digital experience expectations.

(16:50) Open ecosystems and partnerships integrate best solutions to deliver desired customer experiences.

(19:45) AI can efficiently process data, enabling human expertise to be leveraged for the "art" of decisions, like lending.

(38:20) A crawl, walk, run approach is needed to safely adopt AI while protecting data privacy and security.

Resources Mentioned:

Gary Lewis -

https://www.linkedin.com/in/gary-lewis-466b148/

Jack Henry | LinkedIn -

https://www.linkedin.com/company/jack-henry/

Jack Henry | Website -

https://www.jackhenry.com/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnion #Lending #Fintech

On this episode, host Vince Passione is joined by Dee Edie, President and CEO of Pine Bluff Cotton Belt Federal Credit Union; Tanya Romero-Sturgeon, President and CEO of Guadalupe Credit Union; and Tyler Valentine, President and CEO of StagePoint Federal Credit Union, for a 3-part series. In this final episode of the series, they talk about using loan participations to mitigate geographic risk, dealing with fraud, collaborating with fintechs and the importance of the human element in financial services.

Key Takeaways:

(02:37) Dee’s credit union uses participation loans but lacks liquidity to continue.

(07:29) Tanya’s credit union now uses an early fraud detection report to prevent losses.

(09:00) Small credit unions should unite on technology expectations and innovation.

(14:39) If lending happens in an app, funding should still go to credit unions.

(16:44) Members often want human interaction for finances.

(20:25) Credit unions must observe people and adjust to their changing needs. 

Resources Mentioned:

Tanya Romero-Sturgeon - https://www.linkedin.com/in/tanya-romero-9aa33b91/

Tyler Valentine - https://www.linkedin.com/in/tyler-valentine-wyo/

Meridian Link - https://www.meridianlink.com/

Zest AI - https://www.zest.ai/

Felix Pago- https://felixpago.com/en/

Pine Bluff Cotton Belt Federal Credit Union - https://www.pbcbcu.org/

Guadalupe Credit Union - https://www.guadalupecu.org/

StagePoint Federal Credit Union - https://www.stagepointfcu.com/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnion #Lending #Fintech

Host Vince Passione is joined by Dee Edie, President and CEO of Pine Bluff Cotton Belt Federal Credit Union; Tanya Romero-Sturgeon, President and CEO of Guadalupe Credit Union; and Tyler Valentine, President and CEO of StagePoint Federal Credit Union for a 3-part series. In this second episode, they look at strategies for working with delinquent borrowers, regulatory considerations around debt restructuring, indirect auto lending programs, and serving immigrant communities through ITIN lending.

Key Takeaways:

(01:42) Financial coaching and collections work together to restructure budgets.

(02:23) Restructuring budgets takes multiple sessions and education.

(05:50) Debt restructuring still requires the ability to repay.

(06:45) Restructuring should not just mask delinquency problems.

(15:13) Auto dealerships without competition proved untrustworthy.

(15:44) Raw indirect auto lending program had issues.

(18:55) ITIN lending led to 7% annual growth.

(21:29) Success came from serving all community members.

Resources Mentioned:

Tanya Romero-Sturgeon - https://www.linkedin.com/in/tanya-romero-9aa33b91/

Tyler Valentine - https://www.linkedin.com/in/tyler-valentine-wyo/

Pine Bluff Cotton Belt Federal Credit Union - https://www.pbcbcu.org/

Guadalupe Credit Union - https://www.guadalupecu.org/

StagePoint Federal Credit Union - https://www.stagepointfcu.com/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnion #Lending #Fintech

Host Vince Passione is joined by Dee Edie, President and CEO of Pine Bluff Cotton Belt Federal Credit Union; Tanya Romero-Sturgeon, President and CEO of Guadalupe Credit Union; and Tyler Valentine, President and CEO of StagePoint Federal Credit Union for a 3-part series. In this first episode, they discuss strategies for dealing with economic challenges.

Key Takeaways:

(02:12) Collaborative discussions help guide credit union strategy and decision-making.

(04:22) Getting creative with new emergency loan products aided members impacted by natural disasters.

(08:05) Monitoring used vehicle values prompted an adjustment in indirect auto lending practices.

(11:55) Serving low-income members is focused on financial education and counseling.

(13:33) Deposit growth funding facilitated lending to underserved communities.

(17:39) Deposit growth strategy is as critical as lending strategy.

(18:30) Deposit pricing strategies aim to retain core deposits.

Resources Mentioned:

Tanya Romero-Sturgeon - https://www.linkedin.com/in/tanya-romero-9aa33b91/

Tyler Valentine - https://www.linkedin.com/in/tyler-valentine-wyo/

Pine Bluff Cotton Belt Federal Credit Union - https://www.pbcbcu.org/accounts

Guadalupe Credit Union - https://www.guadalupecu.org/

StagePoint Federal Credit Union - https://www.stagepointfcu.com/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnion #Lending #Fintech

On this episode, host Vince Passione is joined by Brian Creagh, SVP, Credit Card and Education Lending at Navy Federal Credit Union. Brian talks about serving member needs across their financial lifecycle, education loans, establishing trust with members and growth opportunities.

Key Takeaways:



(03:07) Serving rising tuition costs.

(05:48) Student loan refinancing demand.

(06:45) How to prepare members for repayment.

(09:03) The importance of focusing on customizing products to members.

(14:40) Deepening relationships with members.

(22:28) FICO’s role in collections.

(28:56) Brian emphasizes trust and carrying out the right actions over time.

Resources Mentioned:

Brian Creagh - https://www.linkedin.com/in/brian-creagh-53010129/

SAVE Plan - https://studentaid.gov/announcements-events/save-plan

Navy Federal Credit Union - https://www.navyfederal.org/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnions #Lending #Fintech

On the second half of this two-part episode, host Vince Passione is joined by Ronaldo Hardy, President and CEO of NACUSO, to discuss the future of credit unions. Ronaldo talks about how, since the industry will be built on technology, leaders must have tech proficiency. He also emphasizes the need for emotional intelligence in leadership and the benefit of CEOs from diverse backgrounds.

Key Takeaways:

(1:10) Leaders need tech proficiency.

(2:54) Leadership skills such as emotional intelligence will be vital going forward.

(3:28) The CEO role can be filled by people with different backgrounds and disciplines.

(11:49) The need for technology has driven more CUSO formation focused on innovation.

(13:12) Increased responsibility on both CUSOs and credit unions to properly evaluate investments.

(17:05) Need to protect smaller credit unions through new CUSO models and collaboration.

(18:35) Collaboration can benefit even the smallest credit unions.

Resources Mentioned:

Ronaldo Hardy - https://www.linkedin.com/in/ronaldohardy/

NACUSO - http://www.nacuso.org/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnions #Lending #Fintech

On this episode, host Vince Passione is joined by Ronaldo Hardy, President and CEO of the National Association of Credit Union Service Organizations (NACUSO). Ronaldo talks about the basics of a credit union service organization as well as the benefits for fintech companies in partnering with credit unions through CUSOs. With nearly a decade leading financial institutions, Ronaldo provides insights into how CUSOs operate today and the direction they are moving towards in the future.

Key Takeaways:

(00:48) CUSOs act as the entrepreneurial arm of credit unions, providing shared resources.

(02:07) Any entity taking just $1 of investment from a credit union becomes a CUSO.

(03:14) CUSOs allow for increased collaboration between fintechs and credit unions.

(05:09) CUSOs evolved from cooperatives to more innovative models responding to consumer expectations.

(08:36) Credit unions are reorganizing as fintechs while still delivering the credit union model.

(15:20) Removing lending restrictions allows credit unions to reach their members better.

(20:48) Building talented people focused on empathy and purpose is critical for credit union success.

Resources Mentioned:

Ronaldo Hardy - https://www.linkedin.com/in/ronaldohardy/

Credit Union Innovation Report - https://www.filene.org/reports/credit-union-innovation-the-member-perspective

NACUSO - https://www.nacuso.org/

Thanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation.

#CreditUnion #Lending #Fintech