21 THE NAFCU JOURNAL March–April 2023 but also reflect and consider process improvements for the next interest rate cycle.” At the same time, IDB Global is focused on the strategic side of lending to identify how the credit union can generate more loans, said Lopez. “Our campaigns emphasize our lower rates compared to other lenders, and we remind members that they may refinance when interest rates drop in the next interest rate cycle.” Because mortgage loans make up the majority of their loan portfolio, the goal is to organically generate more mortgage loans with adjustable-rate products, she added. Considering the Full Picture Finding new sources of lending revenue is not just limited to expanding existing programs. “There are a number of credit unions that are interested in starting a new or expanding a current business loan program,” said St. John. “We are receiving calls from members who want guidance on how it works and what they need to do to ensure compliance.” “Auto loan volume is steady for us, but we are seeing an increase in the loan amounts,” said Anderson. “A combination of lack of supply and inflation has increased auto loans 20% over 2019 and recreational vehicle loans 30% over 2019.” There is concern about increasing credit card debt, but Anderson pointed out that the first quarter usually reflects higher-than-normal holiday spending, with balance pay downs occurring when tax refunds are issued. “The increased debt is across all demographics, with people dipping into credit cards to pay for routine, recurring expenses, such as groceries, that have risen with inflation,” he said. “We’ ll see if people are able to reduce their balances with tax refunds.” While interest rates and credit card debt are causing credit union members to struggle, Anderson said that credit unions should be proactive in their education of members. “We start with educating our staff with financial literacy courses that help them make good decisions for themselves and prepare them to advise our members,” he said. Using a “Triple A” philosophy, Mountain America staff assess the members’ needs rather than simply answer the question asked, advise the members of different options to meet their needs and assist the member in obtaining the service or product. “We believe in face-to-face interactions with members and have 100 branches, but we also respond to members calling in to our credit union, and we reach out to members,” said Anderson. “Interest rates are rising but that doesn’t mean that credit unions don’t have greater opportunities to better serve members.” Reference: 1. “Average Credit Card Debt In The U.S. Is Rising — How Does Yours Compare?” Forbes. November 29. 2022. www.forbes.com/sites/qai/2022/11/29/average-creditcard-debt-in-the-us-is-rising---how-does-yourscompare/?sh=2f35175c6489. “ We believe in face-to-face interactions with members and have 100 branches, but we also respond to members calling in to our credit union, and we reach out to members. Interest rates are rising but that doesn’t mean that credit unions don’t have greater opportunities to better serve members. ” NATHAN ANDERSON, EXECUTIVE VICE PRESIDENT & CHIEF OPERATING OFFICER, MOUNTAIN AMERICA CREDIT UNION
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