When the COVID-19 pandemic struck, credit unions faced unprecedented challenges. Lockdowns forced closures of credit union branches, and traditional lending methods seemed obsolete. Many credit unions believed their members preferred in-person borrowing, which created concerns about achieving lending goals while branch doors remained closed.
Calhoun Liberty Credit Union (CLCU), located in the heart of the Florida panhandle, recognized the need for a radical shift in their lending approach. Faced with a small-town demographic seeking easy access to funds, the credit union collaborated with CU*SOUTH to implement a streamlined loan program, 1-Click Offers.
This innovative solution involved pre-screened offers, allowing the credit union to make decisions based on relationship parameters and credit bureau scores, ultimately generating a list of members eligible for a guaranteed loan offer through online banking.
The new program eliminated the need for manual credit report reviews, applications and paperwork. Members received personalized loan offers, accepted them online, read disclosures, designated funding accounts, and signed loan documents—all from the comfort of their homes.
“This program provides CLCU the ability to grow our loan portfolio without growing our loan production staff. Hands-off lending!” said Shelly Burns, CLCU’s Chief Lending Officer.
The results were remarkable. CLCU experienced a 7% increase in its unsecured loan portfolio within one month, requiring minimal manual intervention.
Surprisingly, age and credit scores ceased to be significant barriers, with 33.6% of loans accepted by members over 50 and 63% of accepted offers having credit scores over 680. The credit union successfully reduced the cost of acquiring loans to nearly zero while expanding its loan portfolio.
Burns said one of CLCU’s goals in 2023 was to utilize 1-Click Offers quarterly to continue growing its loan portfolio with a smart and simple alternative product.
CLCU’s success is a testament to the importance of adapting to the evolving financial landscape. The pandemic highlighted the drawbacks of traditional face-to-face lending practices. As the world embraced digital solutions, credit unions needed to follow suit and embrace innovative lending alternatives.
Working together as a team, that’s exactly what CLCU and CU*SOUTH accomplished.
CU*SOUTH is building a collaborative, peer-to-peer community of Credit Unions through shared development of technology and service platforms. CU*SOUTH is headquartered on the Eastern Shore of Mobile Bay, with a nationwide network of CU experts.