Join host Vince Passione as he meets with Bill Moniz, CEO of Cinch, to discuss the turbulence and trends of the auto finance industry. From the rise of negative equity to prime-only lending strategies, Bill shares insights on how credit unions can navigate credit quality challenges, discusses educating members on financing options, and gives his thoughts on market reactions to an expected Federal rates drop.

Key takeaways:

1:21 - The history of Credit Union Loan Source and Cinch: Two organizations operating as one.

3:07 - ‘Market Day Supply’–the metric used to calculate how many days it would take to sell all of a specific car model–is still higher than long-term trends, but is leveling out to near pre-Covid levels.

6:50 - Almost a quarter of new vehicles financed have negative equity rolled into them.

9:08 - While credit unions’ market share of auto loans has increased over the last two years, so too has delinquencies–increasing risk for credit unions.

10:48 - Consumer debt priorities have changed. Now, cell phone bills are the priority.

12:59 - Could subvention be utilized more effectively in the EV market?

16:23 - Auto-focused fintechs are cutting back, not making as many inroads as they have done in previous years, but direct-to-consumer innovation remains.

18:17 - Inventory management is an underutilized innovation category that could support more auto-purchasing.

19:55 - Personal unsecured loans have underperformed, and this is a concern for lenders and a risk for credit union balance sheets.

21:17 - Auto-lending is a nuanced service that takes time and expertise to navigate successfully.

23:28 - Expectations of what happens if and when the Fed lowers rates.

Resources Mentioned:

• https://site.manheim.com/en/services/consulting/used-vehicle-value-index.html Manheim index
• https://www.businesswire.com/news/home/20240628537547/en/KBRA-Releases-Research-%E2%80%93-CMBS-Loan-Performance-Trends-June-2024 KBRA, delinquencies on asset-backed securities report
• https://www.cbsnews.com/news/cdk-attack-update-outage-car-sales-impact/ CDK outage
• https://www.occ.treas.gov/topics/supervision-and-examination/bank-operations/accounting/current-expected-credit-losses/index-current-expected-credit-losses.html CECL reserves
• https://www.cinchautofinance.com/ Cinch

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 #AutoFinance #AutoLending

If the 67 million Hispanic consumers in the USA were their own nation, they’d have the sixth largest GDP in the world. And yet, they’re overlooked and underserved by mainstream banks and credit unions alike. On this episode, host Vince Passione and Victor Corro, CEO of Coopera Consulting, discuss how credit unions can earn the right to serve these nuanced members.

Key takeaways:

03:17 - “Hispanic, Latino, Latinx” are imperfect labels that fail to acknowledge the depth and nuance of individual identity.

06:51 - Credit unions need to increase their research in, and understanding of, multicultural members as the nation prepares to be “Majority minority.”

10:26 - How building and earning the trust of underserved communities is key to a credit union’s mission, and its long-term growth.

13:08 - Hispanic members gravitate towards fintech solutions because fintech have done a better job of reducing friction points.

16:05 - Key products, services and solutions to support the breadth and scale of Hispanic members.

21:27 - The credit union system is lacking a sense of urgency, and needs to be more proactive about investing in serving multicultural members.

23:25 - Multicultural consumers are often pigeonholed–and that’s leading to poor service from financial institutions.

Resources Mentioned:

• https://www.brookings.edu/articles/latinos-and-the-future-of-finance-why-we-need-to-examine-the-motivations-and-effects-of-latinos-fintech-adoption Brookings study
• https://www.cooperaconsulting.com/ Coopera Consulting

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 #Credit

Serious mistakes on credit reports is the number one consumer complaint, but are these issues really a surprise? The systems were developed decades ago, and were never intended to take the scale and breadth of information the modern consumer can now provide. On this episode, host Vince Passione is joined by Christian Widhalm, CEO at Bloom Credit, to discuss the opportunities for improvement.

Key takeaways:

01.24: Almost a quarter of people find serious mistakes in their credit reports. The CFPB cites errors as the number one consumer complaint.

02:18: The rails credit data is transmitted on were never designed to take the modern volume and breadth of data inputs.

05:05: Even long-tenured, established lenders continue to make fundamental mistakes on credit reporting–partly due to the systems being decades old, and the data requirements being increasingly nuanced.

07.38: Bloom Credit has developed a bi-directional API providing lenders with consistent information, regardless of what credit bureau they’re pulling from.

11.12: Bloom Plus is a new product to enhance consumer management of their own credit data.

14.00: CFPB announced a new rule on Buy Now Pay Later lenders, requiring updated standards, but BNPL credit reporting continues to lag.

15.12: With each credit reporting bureau pursuing its own solution to BNPL reporting, BNPL lenders have been able to sit back and await their decisions without taking proactive steps.

18.12: Why credit reporting would also be good for BNPL lenders.

20.14: CFPB has been critical of credit reporting, and there may be a potential ‘New standard of care’ introduced.

Resources Mentioned:

• https://bloomcredit.io/ Bloom Credit
• https://bloomcredit.io/products/bloomplus/ Bloom Plus

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 #Credit

Is the key to credit union success just better marketing? On this episode, host Vince Passione is joined by Barry Kirby, co-founder and chief revenue officer of Union Credit, to discuss the products and placements that could revolutionize consumer preferences.

Key takeaways:

2:07 - How a “marketplace” helps expand credit unions’ institutional reach and brand awareness.

5:25 - Opportunities for credit unions to leverage credit cards to reach younger audiences.

8:28 - The ‘08 financial crisis shifted consumer trends away from credit cards and towards personal loans–but those trends are now reversing again.

10:46 - A key risk for community lenders is marketing budget.

12:09 - Is there a liquidity crisis for credit unions? Some leaders are starting to consider the temporary challenges of the last few years as macroscopic norms.

13:26 - Securing payroll is critical for credit unions to be seen as a member’s primary financial institution.

15:59 - Can digital marketing help credit unions more effectively penetrate low-income communities to increase and improve financial wellness?

18:34 - Focusing on the most pressing challenges and identifying the right partners to address those is the most effective way for credit unions to navigate the booming fintech ecosystem.

21:00 How fintech strategically benefits from credit union investors.

Resources Mentioned:

https://www.unioncredit.app/ Union Credit

https://www.trustage.com/ventures TruStage Ventures

https://www.curql.com/ Curql

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 #CreditCards #Marketing

On this episode, host Vince Passione is joined by Dave Ledwell, SVP, Consumer and Business Lending at Navy Federal Credit Union–the world’s largest credit union. The discussion covers all things auto-lending, the opportunities and risks facing fintech, and how credit unions can thrive in both areas by focusing on outstanding member service.

Key takeaways:

2:24 - How member service–proactive, clear communication, and efficient support–can be the bedrock of credit union growth and member loyalty.

4:33 - Excellent member service leads to trust which, at scale, can provide a credit union with a competitive advantage against traditional direct lenders, particularly in the auto-lending space.

7:28 - The strategic decision behind growing auto-lending during the Covid pandemic.

10:36 - How credit unions can protect members’ financial wellness when faced with negative equity loans.

14:01 - Strategies for navigating the turbulent electric vehicle (EV) market and what it means for auto-lending in the credit union space.

18:19 - The short- and long-term implications of embedded finance on the credit union system, and financial institutions can remain relevant in a transactional ecosystem.

21:43 - Members don’t care about the size of a credit union; they care about the service and value they receive.

Resources Mentioned:

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

https://us.dealertrack.com/ Dealertrack

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.

On this episode, host Vince Passione talks mortgage lending, consumer behaviors, credit-building and financial wellness with Richard Wada, Chief Lending Officer of Patelco Credit Union.

Key takeaways:

0:00 - Intro

1:12 - Patelco Credit Union overview

1:59 - The value of diversifying a loan portfolio.

4:35 - Challenges and changes of mortgage books in a high-rate environment

7:56 - How partnerships can help credit unions scale loans outside of traditional lending parameters

10:21 - How Patelco is skewing younger on new members

13:09 - The importance and value of creating credit union products that incentivize good financial behaviors and improve financial wellbeing

15:51 - Shifts in managing transactional accounts to maximize member engagement

17:53 - The most critical marketing lesson for credit unions.

Resources Mentioned:

https://www.patelco.org Patelco Credit Union

https://www.calhfa.ca.gov California Finance Housing Authority

https://www.mycumortgage.com myCUmortgage

https://www.patelco.org/credit-cards-and-loans/personal-loans ScoreUp

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 #HomeLoans #Mortgages

On this episode, host Vince Passione is joined by Jeff Kesler, President Dallas-Ft Worth at Veritex Community Bank, for an exploration of how a financial institution’s values and principles can drive strategic growth—even through the most economically challenging times.

Key takeaways:

(1:25) How Veritex Community Bank was founded with strong values.

(4:55) Veritex’s M&A strategy, and how it changed through the recent Fed cycle.

(8:00) How intentionality and a commitment to organization values is critical to sustaining culture through M&A.

(9:58) Focusing on sustainable, core deposits is key to navigating economic uncertainty.

(15:17) When Fed rates go one way or another, you discover which financial institutions have sound long-term strategies.

(17:01) Fintech has to be embraced by, and complementary to, the regulated banking system

(19:26) The key to growth is defining what processes are scalable—and AI and machine learning may be critical to that.

(21.16) Three things to be excited about for financial services.

Resources Mentioned:

• https://veritexbank.com Veritex Community Bank
• https://www.consumerfinance.gov Consumer Financial Protection Bureau
• (CFPB)
• https://veritexbank.com/veritex-holdings-inc-announces-acquisition-of-
• north-avenue-capital-llc/ North Avenue Capital acquisition
• https://www.mantl.com MANTL

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 #Banking #M&A #Fintech #Leadership

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