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The Biggest Lending Lessons We Learned in 2025 · Leaders in Lending

0:07
Speaker 1: Barry would love to get your perspective on kind of
0:10
Speaker 1: what's what's driving the Titan credit in twenty twenty five.
0:14
Speaker 2: Overall, I think just uncertainty. Right since we've had a
0:19
Speaker 2: new administration come in in January, there were threats of
0:23
Speaker 2: reductions in government workforce, which some have come to pass
0:26
Speaker 2: and some haven't. The regulatory environment has sort of been
0:29
Speaker 2: turned a little bit upside down. The CFPB doesn't seem
0:33
Speaker 2: to have as much maybe forward influence as an expectation
0:38
Speaker 2: than maybe what they had in the past. But then
0:41
Speaker 2: just in the economy, we've been waiting for a recession
0:44
Speaker 2: hasn't come, been waiting for rates to reduce, hasn't come,
0:47
Speaker 2: been waiting for unemployment to climb, hasn't necessarily I mean,
0:50
Speaker 2: it's come up a little bit, but the labor mark
0:52
Speaker 2: is still really strong. So all the sort of fundamental
0:55
Speaker 2: economic conditions that would normally pre predate a credit crunch
1:03
Speaker 2: haven't necessarily come to pass. So it's been more about
1:05
Speaker 2: our expectation or worry that's coming. And that's actually a
1:10
Speaker 2: prudent approach in the face of uncertainty. May not necessarily
1:14
Speaker 2: be the time to take on a whole lot of risk.
1:17
Speaker 2: Although I'll argue with myself a little bit on this.
1:19
Speaker 2: The counterpoint is, if everyone else is pulling back, isn't
1:23
Speaker 2: that a really good time for you to pull forward
1:25
Speaker 2: in an aggressive but in somewhat measured fashion. When I
1:30
Speaker 2: say measured meaning more about the quality of risk, you know,
1:34
Speaker 2: maybe that's something that where some credit unions and banks
1:38
Speaker 2: could win on.
1:43
Speaker 1: You said, Q four is the crystal ball. We're going
1:46
Speaker 1: into twenty six and we want to do X y
1:48
Speaker 1: Z from a lending perspective, and then things shifting Q
1:51
Speaker 1: one Are they shifting? Q two? Being able to have
1:53
Speaker 1: these tools at your fingertips allows you to reallocate your portfolio.
1:57
Speaker 1: Let's say you were heavily weighted in he lock, maybe
1:59
Speaker 1: second waited in the auto, and then personal loans, credit cards,
2:02
Speaker 1: on and so forth. And as things changed in the macro,
2:06
Speaker 1: as delinquencies rise, if there's margin compression, and you know
2:10
Speaker 1: the asset backed type of loans, you can reallocate your
2:13
Speaker 1: your strategy because you kind of know what's going on
2:15
Speaker 1: in real time or maybe with a three month lag.
2:18
Speaker 1: So I think it definitely helps in doing that because
2:20
Speaker 1: I remember back in my day, we would set budget
2:22
Speaker 1: and we would manage to budget for that full year,
2:24
Speaker 1: and we really didn't know what was going to change
2:28
Speaker 1: right away. So you got to the end of the
2:30
Speaker 1: year and you're like, up, we either hit budget or
2:32
Speaker 1: we were a little bit off, and the board's wondering
2:34
Speaker 1: why were we off or why were we over? So
2:36
Speaker 1: I think having those tools definitely helps kind of the
2:38
Speaker 1: real time decisions that the executives were making cross the
2:41
Speaker 1: lending ecosystem.
2:42
Speaker 2: Yeah, like think back Q one of twenty three when
2:44
Speaker 2: there was a liquidity crunch. You know, think of your
2:49
Speaker 2: lending partners, the credit unison banks you talked to across
2:51
Speaker 2: the country, those that had the ability to sort of
2:56
Speaker 2: course correct quickly or had already had the foresight to
2:59
Speaker 2: think of the sort of uh uh uh uh scenarios
3:03
Speaker 2: where you may need to course correct. I mean, they
3:05
Speaker 2: were able to move pretty fast, and they were able
3:07
Speaker 2: to get deposit products out there and and rates out
3:11
Speaker 2: there that that would quickly allow them to get a
3:13
Speaker 2: little more liquidy. And I did talk unfortunately some lending
3:16
Speaker 2: partners who were sort of stuck with well, now, what
3:20
Speaker 2: you know, where do we go from here? And and
3:22
Speaker 2: almost some inertia because of that, maybe because they they
3:26
Speaker 2: didn't take the time to sort of run those alternate
3:28
Speaker 2: scenarios where they didn't have the tools at their disposal
3:30
Speaker 2: or didn't know how to use those tools. So those
3:34
Speaker 2: executives on the sharper edge of the curve, with those
3:36
Speaker 2: tools available and the ability to use them, I think
3:39
Speaker 2: we're able to sort of uh to manipulate their their
3:42
Speaker 2: balance sheet and and their offerings out to their their
3:45
Speaker 2: consumers faster and be able to sort of mitigate any
3:49
Speaker 2: any sort of risks of that liquidated crunch that others
3:53
Speaker 2: had to experience, you know.
3:58
Speaker 3: As they think about like technology innovation AI, whether it's
4:02
Speaker 3: you know, the type of AI we use to do
4:04
Speaker 3: our underwriting and risk assessments or things like generative AI,
4:09
Speaker 3: the role of a fair lending officer or a fair
4:13
Speaker 3: responsible banking officer is getting more complex and you really,
4:16
Speaker 3: you know, it was already a very complex area, but
4:18
Speaker 3: now taking those rules and kind of applying them to
4:22
Speaker 3: rapidly changing new technology, Like how do you think about
4:25
Speaker 3: staying on top of technology developments and taking kind of
4:30
Speaker 3: the crux of the regulation which hasn't changed, and then
4:35
Speaker 3: measuring with new technologies like AI. That's a big light,
4:39
Speaker 3: lightweight question.
4:40
Speaker 4: I mean it really is, and especially coming from an
4:43
Speaker 4: online BAK where we do everything digitally to start with you,
4:46
Speaker 4: really we are becoming more and more involved in the
4:48
Speaker 4: process of AI machine learning in our institutions than ever before.
4:53
Speaker 4: And it's really based on the expectation of the regulators.
4:56
Speaker 4: They want us to make sure we're aware of what
4:58
Speaker 4: are in our models, What are the variables in there,
5:01
Speaker 4: Is there any potential risk of discrimination and if so,
5:05
Speaker 4: how are you controlling for it? Are you changing the
5:07
Speaker 4: variables that are in there? Are you requiring different standards
5:10
Speaker 4: around it. So we're keeping in touch with our models
5:16
Speaker 4: across our across our organization as well as across the industry.
5:21
Speaker 4: And that's we're again having a platform like CBA where
5:24
Speaker 4: we can come together and talk about my regulators looking
5:27
Speaker 4: for this within examinations or how we're looking for oversight
5:32
Speaker 4: versus a different crudential regulator that might have a different focus.
5:36
Speaker 4: We know last year there was the CFEB sent out
5:39
Speaker 4: a questionnaire to multiple organizations to gather more information on
5:44
Speaker 4: what are they doing for models and oversight internally. So
5:48
Speaker 4: as we're trying to figure it out, the regulators are
5:50
Speaker 4: trying to figure it out. As well, how do we.
5:57
Speaker 2: Get regulators comfortable with partnering with FinTechs and those FinTechs
6:03
Speaker 2: specifically that we be leveraging AI based under models thinking
6:07
Speaker 2: of the regulatory environment that we're dealing with today.
6:09
Speaker 3: Yeah, it's a good question, and I think it's a
6:13
Speaker 3: shifting regulatory environment on a day to day basis. I
6:16
Speaker 3: think all of us have certainly watched the changes with
6:20
Speaker 3: the various financial regulators this year and then now some
6:25
Speaker 3: court challenges to the leadership and who's on the board
6:27
Speaker 3: and who's not on the board, and what the rules are.
6:29
Speaker 3: So I would recommend for a credit union or really
6:33
Speaker 3: any lending institution, like just focus on the fundamentals. You
6:37
Speaker 3: may not know exactly what the rules are, You may
6:39
Speaker 3: not know exactly what the rules will be, but you
6:42
Speaker 3: do know that you should understand how models work. You
6:47
Speaker 3: should understand who owns which part of the decision. You
6:51
Speaker 3: should do your due diligence on any vendors that you
6:54
Speaker 3: partner with in a traditional way where you're looking at
6:58
Speaker 3: compliance risk, financial health, reputational risk, like even though those
7:05
Speaker 3: things are may not be explicitly called out anymore. Like
7:07
Speaker 3: reputational risk, as an example, that doesn't mean that you
7:11
Speaker 3: don't want to do that for your business. So think
7:13
Speaker 3: about from a core business standpoint, what do you care about?
7:17
Speaker 3: What do you think the key areas are that you
7:19
Speaker 3: should be able to both understand and document uh And
7:23
Speaker 3: then how can you up level your organization to really
7:26
Speaker 3: be confident in understanding and monitoring AI models? And I
7:30
Speaker 3: think that's a very big challenge. And I think similar
7:34
Speaker 3: to a lot of conversations we've had about different sized organizations,
7:37
Speaker 3: Like there's choices of partnering. There are many vendors, there
7:41
Speaker 3: are many consultants who help in this space today. So
7:44
Speaker 3: you may not be able to hire deep AI experts
7:48
Speaker 3: internally you don't need to, but can you find trusted
7:50
Speaker 3: partners that can help you do that evaluation and help
7:53
Speaker 3: and opportunities for your team to become to kind of
7:56
Speaker 3: deepen their subject matter expertise as it relates to AI
8:00
Speaker 3: and new and more innovative ways of evaluating risk and lending.
8:05
Speaker 1: Yeah, and that's a good like having a good general
8:08
Speaker 1: high level knowledge base of all things AI. I mean,
8:11
Speaker 1: it's the topic at hand most often anymore, right, but
8:15
Speaker 1: digging even deeper. So if you are partnered with some
8:17
Speaker 1: type of institution that is driving AI and some metric.
8:21
Speaker 1: How can you get more knowledge base into your internal
8:24
Speaker 1: teams on this company, does X, Y and Z. We
8:28
Speaker 1: kind of understand the full rails of it. Maybe we
8:30
Speaker 1: don't understand all of it, but we have confidence in
8:33
Speaker 1: going into a regulatory exam or speaking to regulators of
8:36
Speaker 1: why we're comfortable with this approach and having that for
8:40
Speaker 1: every single vendor that you have that leverages AI, so
8:43
Speaker 1: you have the high level knowledge base and then you
8:45
Speaker 1: have all the double clicks into everything else you're using
8:48
Speaker 1: it for. In the auto space right now, there's more
8:55
Speaker 1: new vehicles that are being purchased at dealerships. It's no
8:57
Speaker 1: longer kind of this used versus new type of mentality.
9:02
Speaker 1: If you think about though, people that got into a
9:04
Speaker 1: car such as there they bought their daughter a vehicle
9:08
Speaker 1: or so, the rates that they were offered back then
9:11
Speaker 1: were decent in a sense, probably somewhere between the high
9:15
Speaker 1: sixes mid eights, depending upon credit quality, things of that nature.
9:18
Speaker 1: But the newer vehicles that they're now selling are much
9:22
Speaker 1: higher trim packages, higher payments at aprs right now that
9:26
Speaker 1: are still fairly high. What do you think moves the
9:29
Speaker 1: needle for people to go back to purchasing new vehicles
9:31
Speaker 1: or refinance their existing and how many basis points does
9:35
Speaker 1: the FED reducing Does it make sense for them to
9:37
Speaker 1: go into a comfortable payment if they were to buy
9:40
Speaker 1: a useder versus new.
9:41
Speaker 2: Yeah, I mean in a refin deal if there's no
9:45
Speaker 2: other sort of fees associated with it, and typically there aren't.
9:48
Speaker 2: If I can reduce my payment by twenty five dollars,
9:50
Speaker 2: why wouldn't I do that? You know, if I'm able
9:53
Speaker 2: to even stretch out the term a little bit. You know,
9:56
Speaker 2: cars are lasting a lot longer now too, right, So
10:00
Speaker 2: what's the average age of vehicles on the road right now?
10:02
Speaker 2: It's over ten years, just because quality, I think is
10:06
Speaker 2: way better than it was a generation to go. So
10:08
Speaker 2: maybe I'm willing to extend that term out a little
10:11
Speaker 2: bit in order to get a little bit of a
10:13
Speaker 2: lower payment, even if my rate isn't necessarily all that different.
10:19
Speaker 3: Well, I certainly know. I know on one of our
10:21
Speaker 3: prior episodes, we had some of the folks from Experience
10:25
Speaker 3: on who specifically lead their auto market in the credit
10:30
Speaker 3: report and credit scoring area, and they're seeing a lot
10:34
Speaker 3: more of that, like those longer terms that people are
10:36
Speaker 3: taking a longer term now, whether or not they hold
10:38
Speaker 3: that car for very long, they're willing to take a
10:41
Speaker 3: longer term in exchange for a lower payment, and I
10:45
Speaker 3: think that is a big focus at payment versus rate
10:48
Speaker 3: is still for most people the biggest number that they
10:51
Speaker 3: look at, even though the rate long term can mean more,
10:55
Speaker 3: but it depends how long they're going to keep that car,
10:57
Speaker 3: or if they're going to trade it in in three
10:58
Speaker 3: years or they plan to actually.
11:00
Speaker 5: Pay it off.
11:01
Speaker 2: Our credit uns even did ninety six month loans for
11:04
Speaker 2: new vehicles, and we could even charge a little bit
11:07
Speaker 2: of a premium for that ninety six month loan and
11:09
Speaker 2: make a little more yield off it. So and what's
11:12
Speaker 2: stopping you from doing that? In the refine market, you
11:14
Speaker 2: can do the same sort of pricing approach and take
11:18
Speaker 2: a few more basis points to make that to improve
11:21
Speaker 2: the profitability.
11:22
Speaker 4: Of the plant.
11:27
Speaker 3: All of our listeners, I'm sure in both of you
11:30
Speaker 3: that there's this idea and true in a lot of ways,
11:35
Speaker 3: I think founded by a lot of reality that indirect
11:37
Speaker 3: lending does not lead to long term members and that
11:40
Speaker 3: that's a kind of a transaction. And then it's hard
11:43
Speaker 3: if not impossible to build that. And according to a
11:46
Speaker 3: Pinwhill study earlier this year, seventy percent of newly open
11:50
Speaker 3: accounts go inactive in the first ninety days, so seventy percent.
11:54
Speaker 3: So you're spending the time and money and you know
11:56
Speaker 3: KYC to open up that account and then it goes
11:59
Speaker 3: inactive with kind of an anchor option. And I think
12:02
Speaker 3: part of that is the difficulty of doing things like
12:04
Speaker 3: switching direct deposit, switching bill pay and that just inertia
12:08
Speaker 3: that people have a lot to do and that's kind
12:10
Speaker 3: of the last thing on their list. So how do
12:13
Speaker 3: you think about that? How do you think about this
12:15
Speaker 3: kind of indirect lending. Get this new consumer, get this
12:17
Speaker 3: new member, and drive it to become even if not
12:21
Speaker 3: maybe like the full wallet share like part of that
12:24
Speaker 3: and getting a meaningful part that makes that a more
12:27
Speaker 3: economically attractive new member.
12:29
Speaker 1: I've heard that very I'm sure you've heard that same
12:33
Speaker 1: concept of getting an indirect member to become a core
12:36
Speaker 1: member or a primary financial institution is something that just
12:40
Speaker 1: can't happen. And I'm going to disagree with that, and
12:42
Speaker 1: reason because is you have multiple credit unions that play
12:46
Speaker 1: in the indirect space, they're very good at driving automobile
12:51
Speaker 1: loans to their balance sheet, right and they're getting a member.
12:53
Speaker 1: But the consumer at the time of being at a
12:56
Speaker 1: dealership cares about one thing, and it's driving the vehicle
12:59
Speaker 1: off the line that day, and at most times probably
13:03
Speaker 1: not favorable conditions as it relates to APR for probably
13:06
Speaker 1: the payments a little bit out of their general sense
13:09
Speaker 1: of what they wanted to do there. But what happens
13:12
Speaker 1: on the back end, I think is what separates this
13:15
Speaker 1: actually coming to fruition without naming names. We have a
13:18
Speaker 1: lending partner that we partner with here at Upstart that
13:21
Speaker 1: is seeing about a ten to fifteen percent conversion rate
13:24
Speaker 1: on their indirect side because of the amount of touches
13:27
Speaker 1: they're doing after the auto loan comes onto their balance sheet.
13:30
Speaker 1: And I don't know if that's a secret sauce of
13:33
Speaker 1: on the day, three, day, seven, day fifteen. And then
13:36
Speaker 1: another thing that is attractive is you have to incent
13:39
Speaker 1: them just because the institution provides an apy of X
13:43
Speaker 1: or you're able to use your debit card at wherever
13:47
Speaker 1: you want for free. If you have some form of
13:50
Speaker 1: an incentive, then bringing in those members to become core
13:54
Speaker 1: members and not having them close their account out within
13:56
Speaker 1: ninety ninety days that you alluded to, you're going to
13:59
Speaker 1: see higher conversion.
14:00
Speaker 3: Yeah, I think incentive incentives are really important, and I
14:03
Speaker 3: like if you would look at my personal wallet, I
14:05
Speaker 3: have more probably a higher number of credit cards than
14:08
Speaker 3: you would think I would because I love incentives. I've
14:10
Speaker 3: got an Amazon Prime one, I use my American Express
14:13
Speaker 3: for travel. I have very fit for purpose cards that
14:15
Speaker 3: I use for very specific things. Or maybe I get
14:18
Speaker 3: a six month no interest on this and then I'll
14:20
Speaker 3: pay it off before that time. So like those things
14:23
Speaker 3: are for people who want to use those rewards, those
14:26
Speaker 3: can be super beatingful.
14:27
Speaker 2: Sorry you mentioned about onboarding. So multiple touch points through
14:31
Speaker 2: probably multiple different methods, right, Some might be an email,
14:36
Speaker 2: some might be a text, some might be you know,
14:39
Speaker 2: an actual letter that shows up in someone's mail. It
14:41
Speaker 2: might be a phone call, depending on.
14:43
Speaker 1: All the above. And then to take it even a
14:45
Speaker 1: step further is just because Linn walks into a dealership
14:50
Speaker 1: and buys a specific type of vehicle and Barry walks
14:52
Speaker 1: into a different dealership, there's different personas everyone's at a
14:56
Speaker 1: different stage in their life. You have to take it
14:58
Speaker 1: a deep step further and have different campaigns, different touch points,
15:02
Speaker 1: different touch points, But what is your incentive offering to
15:05
Speaker 1: the person at that point in time in their life.
15:08
Speaker 1: And there's so much data that's at your fingertips that
15:10
Speaker 1: you're able to create the messaging around that point in
15:14
Speaker 1: their life, whether it's through looking through their credit reporting agency,
15:18
Speaker 1: you're able to see the income kind of based on
15:21
Speaker 1: everything that's come through from underwriting perspective to tailor your
15:24
Speaker 1: messaging to become or to get people to become more
15:27
Speaker 1: core members.
15:27
Speaker 2: I'm going to take your seventy percent stat and I'll
15:30
Speaker 2: turn it around, say, how about thirty percent actually don't
15:32
Speaker 2: close their account or aren't inactive in the first ninety
15:35
Speaker 2: days anyone go fishing before? I mean, if you got
15:38
Speaker 2: thirty percent of your cast had some sort of a bite,
15:41
Speaker 2: you'd be out there every day. Right. I quit my
15:43
Speaker 2: job just to be a full time fishing So you know,
15:45
Speaker 2: there's an opportunity there that I think is somewhat lost.
15:48
Speaker 2: We tend to focus on the negatives of it. Of all,
15:51
Speaker 2: ninety percent are never going to be well, what about
15:53
Speaker 2: that ten or twenty or thirty, you know, ten to
15:55
Speaker 2: fifteen percent? It is a lot. It really is and
15:59
Speaker 2: can be meaningful. So part of that is the cost
16:02
Speaker 2: of doing business. You know, you're going to cast out
16:04
Speaker 2: and you're not going to get any bites at all.
16:10
Speaker 5: One of the things you said before, and I think
16:12
Speaker 5: you may have shared this at the client summit with
16:14
Speaker 5: many of our clients and potential clients, is that servicing
16:19
Speaker 5: is really just underwriting with an operational twist. What did
16:23
Speaker 5: you mean by that?
16:24
Speaker 6: Yeah, you know, as you as you mentioned, I have
16:28
Speaker 6: been at Upstart for I guess seven years last Saturday,
16:34
Speaker 6: so just just past the seven year mark. And of
16:37
Speaker 6: course I had spent the first five years working, you know,
16:41
Speaker 6: very deeply in upstarts core business that is predicting who
16:45
Speaker 6: will default and then pricing them correctly, our our underwriting business.
16:50
Speaker 6: And so when I joined servicing a little over two
16:53
Speaker 6: years ago, I really tried to think quite a lot
16:55
Speaker 6: about what it meant for us to take our our
16:58
Speaker 6: core competency and to apply those skills to this relatively
17:02
Speaker 6: new space. And I guess the way that I would
17:04
Speaker 6: say is that in underwriting, your job is to take
17:07
Speaker 6: maybe all of these applicants. You're taking applicants, you're sort
17:12
Speaker 6: of lining them up in riskiness. You're spacing them not correctly,
17:14
Speaker 6: and then you're determining generally what risk based price is
17:20
Speaker 6: associated with the level of risk that you see for
17:22
Speaker 6: each applicant. And I think in many ways you really
17:26
Speaker 6: want to do the same kind of thing with servicing.
17:28
Speaker 6: You want to maybe take all of these loans, you
17:31
Speaker 6: want to line them up from least risky to most risky.
17:35
Speaker 6: But in underwriting you have this sort of unfair advantage
17:39
Speaker 6: that is that you can maybe take any person whose
17:44
Speaker 6: risk is too high, and if you don't like how
17:48
Speaker 6: risky they are, well you just don't offer them alone.
17:51
Speaker 6: And in servicing we actually have a little bit more
17:54
Speaker 6: operational complexity. We are forced to maintain our relationships with
17:58
Speaker 6: these customers, and so instead of being able to maybe
18:01
Speaker 6: just say, oh, this person is too risky and we're
18:03
Speaker 6: not going to work with them at all, we instead
18:06
Speaker 6: have to maybe look only at the range of operational
18:09
Speaker 6: levers that we have to change their riskiness today to
18:12
Speaker 6: move from how risky they are today to how risky
18:15
Speaker 6: they might be tomorrow. And I think of this as
18:18
Speaker 6: a really really powerful part of our overall opportunity at Upstart,
18:24
Speaker 6: because it allows us to move from just predicting who
18:27
Speaker 6: will default to actually shaping the whole default.
18:34
Speaker 1: You shared how Great Lakes has you know, helped members
18:37
Speaker 1: with thinner credit files start building credit and rebuilding their
18:41
Speaker 1: you know, their financial confidence. I'd love to hear about
18:45
Speaker 1: how you went about doing that and how has it
18:47
Speaker 1: served as a real alternative to UH to pay day lending.
18:50
Speaker 7: Yes, great question, Drew. Thanks. So if we look back
18:54
Speaker 7: at GLCU, we're a low income designated credit union, a
18:57
Speaker 7: community development credit union, so we really start those of
19:01
Speaker 7: modest means, So over fifty one percent of our membership
19:05
Speaker 7: is low income. We serve a very diverse population just
19:09
Speaker 7: because of where we sit in the Chicago suburbs. Have
19:12
Speaker 7: branches in the city and in suburbia. So when we
19:15
Speaker 7: look at serving those members, especially those that are more
19:19
Speaker 7: challenged from a credit perspective, we need to make sure
19:23
Speaker 7: that we have products and services that are going to
19:26
Speaker 7: benefit them and add that value. And one thing that
19:29
Speaker 7: we realized is we just can't have a standard suite
19:33
Speaker 7: of lending products that we say really fit all demographics,
19:38
Speaker 7: because as you and I know, they don't. So we've
19:40
Speaker 7: been very diligent in our efforts to have products and
19:45
Speaker 7: services that are going to help our members improve their lifestyle. Right,
19:50
Speaker 7: some of it is changing their behavior, some is just
19:53
Speaker 7: giving them an opportunity to get back into what we
19:56
Speaker 7: would consider more traditional banking. So couple examples that we've
20:01
Speaker 7: utilized at Great Links Credit Union. One is our credit
20:04
Speaker 7: builder loan. We're very proud of this loan. It's simply
20:09
Speaker 7: one thousand dollars. We don't charge an application fee, there's
20:13
Speaker 7: zero percent, and it's set up on a repayment plan.
20:18
Speaker 7: And the idea is that we're reporting that back to
20:21
Speaker 7: the credit bureau because they are making payments on it,
20:24
Speaker 7: we hold that thousand dollars, so in essence, there's never
20:27
Speaker 7: any delinquency right or a charge off, and it rebuilds
20:31
Speaker 7: their file and it gives them that ability then to
20:34
Speaker 7: use that in their credit file to look at other
20:37
Speaker 7: opportunities for lending in the future. And so I would
20:42
Speaker 7: say it's been somewhat popular. We have about forty loans
20:47
Speaker 7: on file right now, and those that have utilized it
20:52
Speaker 7: have graduated then into other lending products such as getting
20:56
Speaker 7: a credit card or getting a small personal And so
21:01
Speaker 7: when we look at the members that utilize that, they've
21:05
Speaker 7: understood that they either have no credit file or they
21:08
Speaker 7: need that second chance opportunity. Right, we try to tie
21:12
Speaker 7: into the best of our ability financial literacy and education
21:15
Speaker 7: as well, because we do need to change that behavior
21:18
Speaker 7: or that pattern that they've fallen into. So those that
21:21
Speaker 7: do take that seriously will work with our consulors on
21:25
Speaker 7: developing kind of what that needs to look like, how
21:29
Speaker 7: important it is to make those payments timely, and then
21:32
Speaker 7: to utilize that right as that next stepping stone, and
21:36
Speaker 7: that has worked well for those members. We've had that
21:39
Speaker 7: product for a couple of years now and so slowly
21:43
Speaker 7: over time. Right, we want to make sure that we're
21:46
Speaker 7: offering it to the right member that's going to use
21:49
Speaker 7: it in the right way.
21:55
Speaker 3: How can credit unions go to keep that momentum going
21:57
Speaker 3: after the event wraps, like, keep these ideas fresh, keep
22:00
Speaker 3: that kind of roadmap moving forward, even if they can't
22:04
Speaker 3: tackle everything today.
22:06
Speaker 2: From personal experience being at these conferences, you come back
22:08
Speaker 2: and your energize it's like, oh, we could do this,
22:10
Speaker 2: we could do this, we could do this, and there's
22:12
Speaker 2: all great ideas and then life gets in the way,
22:15
Speaker 2: your your normal business gets in the way, or now
22:18
Speaker 2: there's a problem that I've got to I've got to
22:19
Speaker 2: drop everything to solve and you know, next thing, you know,
22:22
Speaker 2: it's two weeks, it's two months after, and you know
22:25
Speaker 2: that all those ideas are still there, but nothing's really
22:28
Speaker 2: been operationalized. So it is critically important to actually you've
22:32
Speaker 2: got to schedule time for yourself to actually get these
22:36
Speaker 2: ideas down on paper, to engage with those in your
22:39
Speaker 2: credit union who can help you push these ideas forward
22:42
Speaker 2: to actually be able to take meaningful steps towards making
22:46
Speaker 2: the change that you want to make. But you've got
22:48
Speaker 2: to You've got to create that time for yourself. Otherwise
22:51
Speaker 2: it just gets soaked up with the day to day
22:54
Speaker 2: that that tends to sort of permeate everything that we do.
22:57
Speaker 1: And if you can build a team around it, right,
22:59
Speaker 1: if you have a team that is dedicated to conference strategy,
23:02
Speaker 1: are there specific check ins? How often are those check ins?
23:05
Speaker 1: Going back to the QBR type of sense. If they're
23:09
Speaker 1: able to kind of run the whole strategy of what
23:11
Speaker 1: conferences bring for value to a credit union and you're
23:14
Speaker 1: doing monthly check ins there, then it doesn't go on
23:16
Speaker 1: the shelf, right sure?
23:18
Speaker 3: True? I think something maybe the credit unions could also
23:22
Speaker 3: pick up on that we tend to do at tech
23:24
Speaker 3: companies like upstart. Is this idea of hack weeek id
23:28
Speaker 3: you know where you have like little teams that maybe
23:30
Speaker 3: you can't allocate resources fully to say an innovation team
23:35
Speaker 3: or more of an R and D team, but can
23:37
Speaker 3: you have like kind of competitions between different teams. Do
23:40
Speaker 3: see what you can do in small little bite see
23:42
Speaker 3: what the people who are doing the work can come
23:44
Speaker 3: up with using the tools that they have.
23:46
Speaker 2: Hack week is a perfect metaphor here because I know
23:49
Speaker 2: some credit unies do have some sort of a hack
23:51
Speaker 2: week type of event, not many of them, but really
23:56
Speaker 2: all credit UNEs should in some respects because think of
24:00
Speaker 2: it from upstarched perspective. How many new innovations have we
24:04
Speaker 2: come up with? There are new ways of thinking have
24:05
Speaker 2: we come up with in terms of approaching a problem
24:07
Speaker 2: from hack Week. We've even created solutions to problems we
24:11
Speaker 2: didn't even know we had through hack week. And think
24:14
Speaker 2: about taking that same concept at the crediting space. It
24:17
Speaker 2: could be very very powerful to again move your company
24:21
Speaker 2: forward the way you want.
24:22
Speaker 1: Even if it's not Hack Week or whatever you want
24:24
Speaker 1: to classified as it's not that much time in essence
24:29
Speaker 1: to build long term short term strategy. As it relates
24:31
Speaker 1: to this, even if you were to set aside a
24:33
Speaker 1: day or two days, if there was a dedicated timeframe
24:36
Speaker 1: of being able to do this, then to Bury's point,
24:38
Speaker 1: you'd be able to get more out of the scope
24:42
Speaker 1: of what you're trying to accomplish.
24:44
Speaker 3: And I think from an employee development and engagement too,
24:47
Speaker 3: if people feel like they have a voice and they're
24:49
Speaker 3: not just being kind of told what innovation looks like
24:52
Speaker 3: and what to do like, you may come up with
24:53
Speaker 3: some great ideas that aren't visible except for somebody who's
24:57
Speaker 3: kind of doing that.