As the economy picks up, so too will loan demand. Be ready to meet members’ needs with a diversified portfolio.
Evidence of a recovering economy hits the news every day. GDP rose 3.2% during first quarter 2010 – an increase undoubtedly fueled by stronger manufacturing activity as well as increased consumer demand – and consumer spending in April increased 0.6% over March. Further, the home buyer tax credit, which expired on Friday, is projected to have added 2.9 million first-time homebuyers. This influx will have far-reaching effects on credit unions’ loan portfolios.
Traditionally, the first quarter is a slow period for loan demand. Our first look data reflects such ebb and flow; however, seasonal flux and the tax credit influence present an opportunity for credit unions to use their strong financial foundations to take advantage of the pick-up in loan demand the recovery is bringing. We’re getting new information daily, so make sure your credit union’s information is up to date.
Mortgages are just one lending opportunity for credit unions, and this week we are bringing you resources to diversify your loan portfolio. Demand for micro credit is strong. If you are considering entering the short-term lending market, read about the techniques your fellow credit unions use to reduce short-term delinquencies and defaults. And of course – thanks to economic forces and regulatory changes – credit card programs are top of mind at many institutions. No credit union has to support a money-losing card program. Use these techniques to build a profitable and healthy credit card program.