The Innovation Series is celebrating 2026 with a diverse slate of finalists whose breakthroughs are reshaping member experience, data and business intelligence, lending, employee engagement, fraud prevention, and digital member engagement — all with the power to help credit unions thrive in a rapidly evolving marketplace. Register for the Innovations In Reimagining The Lending Experience webinar  on Thursday, March 12th at 2PM EST.

Read on to learn more about this year’s finalists in lending:  Cloudvirga, Enable Technologies, Fuse, Suntell.

Cloudvirga:

Describe your Innovation:

Tropos is a configurable loan point-of-sale (POS) platform that sits in front of the loan origination system, connecting the core and third-party services through a unified, API-driven experience. The platform manages borrower and sales staff interactions, data intake, document collection, and real-time validations while seamlessly passing clean, structured data into the LOS. By acting as an intelligent engagement and integration layer, Tropos improves data quality, reduces rework, and enables credit unions to deliver faster, more consistent digital lending experiences without modifying their core or downstream systems.

What opportunity or challenge does it address?

Credit unions face increasing pressure to deliver modern, digital-first lending experiences while operating on fragmented legacy systems that were not designed to work together across all loan types (residential mortgage, consumer, auto, etc). Disconnected cores, LOS platforms, and third-party services often create inconsistent member experiences, duplicate data entry, and operational inefficiencies that slow decisioning and funding. Tropos addresses this challenge by acting as a flexible point-of-sale layer that unifies borrower and staff interactions, standardizes data capture, and integrates seamlessly with existing systems — allowing credit unions to modernize lending experiences, improve data quality, and scale efficiently without costly core or LOS replacements.

How does it increase member value?

Tropos increases member value by removing friction from the lending experience and giving members a faster, more transparent path from application to funding. By unifying data capture, document collection, and third-party integrations within a single point-of-sale experience, Tropos reduces repetitive questions, minimizes errors, and shortens turnaround times. Members benefit from intuitive digital interactions, real-time status visibility, and fewer follow-ups — while credit unions deliver a consistent, high-quality experience that reinforces trust, loyalty, and long-term member relationships.

What differentiates this innovation from competitors?

Tropos is differentiated by its role as a true system-agnostic point-of-sale layer that decouples the member experience from the underlying LOS, core, and third-party providers. Unlike POS solutions that are tightly coupled to a single LOS or require time-consuming and expensive customization, Tropos uses easily configurable workflows, API-driven integrations, and real-time customizations to adapt to each credit union’s existing ecosystem. This allows credit unions to modernize the member experience, maintain flexibility to change downstream systems, and avoid vendor lock-in—while preserving control over data, compliance, and operational processes.

Enable Technologies:

Describe your innovation.

Enable is redefining origination by bringing deposits and loans together on a single, AI-driven platform. We’ve built a unified experience that works seamlessly across digital, branch, and call center channels, powered by AI that guides both end users and frontline staff in real time. It’s not incremental improvement but rather it’s a fundamental shift in how financial institutions originate full long-lasting relationships.

What opportunity or challenge does it address?

For years, credit unions have been forced to operate with fragmented systems. One for deposits, another for lending, whereby creating friction for members, staff, and operations teams. Enable eliminates that disconnect. We address the growing need for speed, simplicity, and intelligence while helping institutions keep pace with rising expectations, compliance complexity, and competition from larger banks and fintechs.

How does it increase member value?

Members and business owners get faster decisions, fewer handoffs, and a more intuitive experience whether they’re opening an account, applying for credit, or bundling products in a single journey. Behind the scenes, AI helps surface the right products, answers questions instantly, and reduces errors which ultimately translates into better service, stronger relationships, and higher satisfaction.

What differentiates this innovation from competitors?

Most platforms still treat deposits and loans as separate workflows. Enable was built from day one as a unified platform with AI embedded at the core – not bolted on. As a member of the executive leadership team, I’ve had the great privilege of seeing Enable evolve rapidly alongside our amazing client partners — such as Nuvision Federal Credit Union ($3.9B, Huntington Beach, CA) and Meriwest Credit Union ($2.1B, San Jose, CA) — incorporating real-world feedback into smarter automation, conversational AI, and flexible configuration. That pace of innovation and our ability to deliver value quickly is what truly sets Enable apart. What further differentiates Enable is the experience behind the platform. Our founders and executive leadership team bring decades of hands-on experience partnering with more than 50+ credit unions with a proven track record of delivering on commitments and turning vision into reality. That history of execution exellence and the long-standing trust we’ve built with innovative credit union partners is something we take great pride in and continue to earn every day.

Fuse:

Describe your Innovation:

Fuse is an AI native loan origination system (LOS) and account opening (AO) for credit unions and other consumer lenders. Fuse is backed with $25M+ from the top-tier investors behind Chime and Alloy, being used by 100+ institutions including Navigant Credit Union ($4.1B, Smithfield, RI) and is the one LOS that FIS re-sells to top 50 banks (selected after reviewing 10+).

Credit unions need to automate to compete with the fintechs and top 10 banks. All traditional LOSs say their platform can deliver “up to 100% automation,” but since that has not materialized in decades, credit unions are rightfully skeptical. This is why Fuse sells its proactive automation money-back guarantee:

• Proactive: Many CUs stall on automation because their staff is overwhelmed with the needs of the day to day. We know people are 71% more likely to go to the gym if there’s a personal trainer nudging them, and Fuse implemented a similar nudge. Every two weeks, the CU meets with a Fuse automation specialist who showcases the automation opportunities identified by our Proactive AI Lending Copilot, and the aligned automations get implemented by either Fuse’s team or the CU. The goal is to get 1%+ more automated every week, leading to >60% true improvements year on year.
• Money-Back Guarantee: CUs are skeptical of being promised opportunities that then do not materialize. That is why Fuse implemented the first industry money-back guarantee in both product capabilities and company practices. Our contract incorporates guarantees so they do not need to rely on salesmanship or nice words. Some examples:
  • Product Capabilities: The system is able to decision on 100% of their core data and board 100% clean applications to their core without post-boarding clean up. The system can lead to 100% auto-decision based on any field or source of data.
  • Company Practices: Integrations are free forever (install and maintain), can be self-built by the client in a 100% open ecosystem or built by Fuse with a guarantee of delivery in under one month, and can be bought directly from partners rather than through mark-ups of up to 2x.
  • Implementation risk coverage: Fuse deploys its own team to run the full implementation rather than relying on CU staff, and assumes the risk on timelines by tying commercial commitments to agreed go-live dates, including covering additional costs from the prior LOS if those contracts need to be extended.
  • Ongoing improvements: After go-live, Fuse contractually commits to meeting every two weeks to review and implement new automation opportunities and provides real-time chat support with short SLAs and an assigned team that knows the institution’s configuration and can unblock issues quickly.

What opportunity or challenge does it address?

The core issue is automation skepticism arising from failed vendor promises, forcing CUs into costly manual processes that hinder staff focus and member experience. Fuse counters this with an AI-native LOS platform offering proactive automation with a money-back guarantee. This shifts risk to Fuse, ensuring guaranteed, measurable improvements in efficiency, staff utilization, and member satisfaction through modern technology.

How does it increase member value?

• Streamlined process with no rekeying: Fuse pulls data directly from the core, so members are not asked to enter the same information twice.
• Flexible channel hopping: Members can start an application online and finish it in the branch, or the other way around, without losing progress.
• More valuable staff interactions: With staff work reduced two- or three-fold, employees can focus their time and energy on sharing advice and cross-promotions.

What differentiates this innovation from competitors?

• • Model: Legacy LOS deliver a system, then rely on tickets and internal bandwidth. Fuse takes ownership for automation outcomes, not just feature delivery.
  • Technology: Our AI copilot continuously scans underwriting and funding workflows in production to surface concrete automation opportunities. Institutions can move toward near-total automation while setting their own pace and risk thresholds.

• Operating cadence: Every two weeks, our team meets with the credit union, reviews real data and brings specific rule, workflow and integration changes, then helps implement them so improvements actually go live.
• Alignment with credit unions: We do not charge for integrations and keep an open ecosystem, so credit unions can use the partners and tools they prefer without extra friction or hidden costs.

Suntell:

Describe your Innovation:

Square 1 Credit Suite is Suntell’s purpose-built credit lifecycle platform for member business lending at credit unions. It was designed specifically to help institutions bring MBL in-house and scale it responsibly, rather than relying on adapted bank systems, outsourced workflows, or external decisioning models.

Square 1 standardizes how business credit is evaluated, documented, and reviewed, allowing lending teams to make faster loan decisions while maintaining consistent credit standards. By creating clarity across lenders, reviewers, and leadership, credit unions are better able to explain decisions, support exam expectations, and deliver a more predictable experience for business members.

The innovation behind Square 1 is its focus on credit discipline as a growth enabler. Credit unions retain ownership and control of their lending process, enabling them to modernize MBL operations in a way that strengthens member relationships rather than outsourcing them.

What opportunity or challenge does it address?

Credit unions face increasing demand for member business lending, but many struggle to grow MBL without slowing decisions or losing consistency. Manual processes, fragmented tools, and lender-to-lender variability often lead to longer turnaround times and difficulty clearly explaining outcomes to members, boards, and examiners.

To manage this complexity, institutions often rely on manual workarounds, spreadsheets, email-driven processes, or disconnected systems to bridge gaps in the lending process. While these approaches can help in the short term, they can limit control, reduce transparency, and make it difficult to scale MBL in a sustainable way.

Square 1 addresses this challenge by giving credit unions a structured framework to manage business credit internally. The opportunity it unlocks is responsible growth. Institutions can move faster, maintain disciplined credit standards, and deliver more consistent experiences for business members without introducing unnecessary complexity.

How does it increase member value?

Square 1 increases member value by improving how credit unions respond to business lending requests. By standardizing credit analysis and credit file content, lending teams reduce rework and delays, resulting in faster loan decisions and clearer communication with members.

For business members, this creates a more predictable and transparent experience. Decisions are based on consistent credit standards rather than individual interpretation, which builds trust and confidence in the credit union as a reliable financial partner. Members spend less time waiting for updates and more time focusing on their businesses.

By enabling credit unions to manage member business lending internally, Square 1 also strengthens long-term relationships. Credit unions maintain direct ownership of decisions and outcomes, allowing them to support local businesses with dependable access to credit while staying true to their cooperative mission.

What differentiates this innovation from competitors?

Square 1 is differentiated by how it aligns with the operational reality of member business lending at credit unions. In many institutions, MBL teams operate with distinct workflows and priorities that differ from enterprise-wide banking systems.

Square 1 was designed to deliver value within that environment by providing a cohesive credit lifecycle framework for underwriting, credit file consistency, and portfolio oversight. Institutions are able to improve credit discipline and decision speed without first undertaking complex, enterprise-scale integration projects.

This allows credit unions to strengthen member business lending without overengineering their technology environment. Teams can focus first on credit consistency, decision quality, and adoption, while maintaining flexibility to evolve processes and integrations over time as needs change.

Check Out The Other Innovation Series Categories

• Employee Enablement
• AI-Powered Member Experience
• Data And Decision Intelligence
• Fraud Prevention And Resolution
• Digital Member Engagement

The post Meet The Finalists For The 2026 Innovation Series: Reimagining The Lending Experience appeared first on CreditUnions.com.

No one knows your members like you. And because of that, no one is in a better position to help them navigate financial decisions and build long-term stability. Today’s credit union industry has more than 140 million members; that’s more than 140 million opportunities to impact lives and communities across the country.

Lending is one of the primary ways credit unions help members achieve their financial goals. That’s why this week on CreditUnions.com, we’re examining how shifting economic conditions are reshaping credit union lending strategies — from the growing role of signature loans to the unintended consequences of ultra-low interest rates, and from collaborative solutions to affordable housing to overlooked cost pressures facing manufactured homebuyers.

Tap into our expertise to learn more about:

• How the signature loan market is changing. Spoiler alert: it’s not (just) because of fintechs.
• How five credit unions and their league are helping members with the right pay histories and pay stubs achieve homeownership.
• What a 10% interest rate cap on credit cards could mean for borrowers and credit unions alike.
• Why ultra-low interest rates might not serve the long-term interests of would-be home buyers.
• What new data revels about the affordable housing crisis beyond single-family homes.

Lending is evolving, and so are credit unions’ strategies. Got a story or tip? Share it with us and join the conversation on CreditUnions.com.

The post 140 Million Reasons To Lend appeared first on CreditUnions.com.

Mortgage? Try again.

Consumers’ lending needs go far beyond transportation and shelter. Credit unions have long met those needs by providing personal loans, sometimes known as signature loans, for a variety of products and people.

Today, credit unions are embracing their clever side with creative packaging that presents loans in a way that makes them … well, a bit more personal. Here’s a look at six personal loan programs that just might meet the needs of members close to home. Take note,  and start making loans.

Wanderlust Required

Vacation loans are a popular credit union personal loan offerings. Park View Federal Credit Union ($399.4M, Harrisonburg, VA) has measures in place to make those funds as easily accessible as possible, with loan amounts ranging from as little as $200 up to $1,200 for a one-year repayment term.

Park View prices vacation loans at 12% APR and requires a $20 application fee along with three months of membership with direct deposit. An online portal — advertised as “6 clicks in 60 seconds” — provides instant decisioning, with funds deposited directly into the member’s account. No credit check is required.

Head Of The Class

Credit Union of America ($1.7B, Wichita, KS) has offered educators a guaranteed loan for at least three decades. Today, the program provides $2,000 on a 19-month term. Priced at 6.99% APR, the rate is slightly lower than the credit union’s traditional personal loan — a perk for members who qualify. Although the credit union originally designed the loan for teachers, it now applies to any educator.

“It feels great to be able to give back to those who give so much to our kids,” says Drew Droegemeier, chief lending officer at Credit Union of America. “Anybody from the principal to the janitor does work that benefits our kids, and it’s great to be able to extend that benefit to everyone.”

Roughly 14% of Credit Union of America’s membership are educators, and the loan is guaranteed for anyone who meets that stipulation.

Borrowers can use loan proceeds for school-related purposes, but that’s not a requirement. Bradley Dyer, senior business development officer, says it’s often a stopgap for teachers who are hired during the summer but don’t draw a paycheck until September. For others, it can fund a downpayment or security deposit when moving for a job.

Flexible Funds In Tough Times

The average funeral in the United States cost between $6,000 and $8,000 in 2023, according to the National Funeral Directors Association. To lighten that burden during a difficult time, some credit unions provide loans to help cover the cost of funeral expenses.

Empower Federal Credit Union ($4.0B, Syracuse, NY) promotes funeral loan services on its website but also works with funeral directors in its market to funnel loans its way when a client needs a financing option. Approximately two-thirds of applications come via the website while the rest come from funeral directors in the credit union’s market.

Especially for this type of loan, we want to take care of our members. There are places looking for reasons not to give a loan … so we focus on getting them a loan.

The funeral loan is identical to Empower’s traditional personal loan in terms of qualifying stipulations and underwriting; however, the credit union prices the funeral loan one point below the personal loan rate.

“It’s a nice thing we can do to save them some money during a time when they need it,” says Kevin Peterson, vice president of consumer lending.

The loans don’t account for a substantial portion of Empower’s overall portfolio. So far in 2025, the credit union has funded 17 funeral loans for a total of approximately $110,000. By comparison, in 2024 it funded 23 funeral loans, totaling $136,000. Peterson says the approval rate for these is around 50%, and the decision generally comes down to credit scores and debt-to-income ratios.

One lesson Empower has learned over the years is that there is value in making things as easy as possible. When the credit union initially began offering funeral loans, it gave local funeral directors access to a portal via which they could submit loan applications to the credit union. That proved too cumbersome, so Empower put in place personalized URLs that allow it to see when applications are submitted and through which funeral homes. That has made the process easier and more efficient.

“Especially for this type of loan, we want to take care of our members,” Peterson says. “There are places looking for reasons not to give a loan. We know what they’re going through, so we focus on getting them a loan.”

Put Care Within Reach

The cost of gender-affirming care can vary wildly, ranging from a few thousand dollars to tens of thousands of dollars, depending on the procedure and whether insurance is involved. Funding that care can be an almost insurmountable burden for many people.

That’s where Alternatives Federal Credit Union ($168.9M, Ithaca, NY) comes in.

The credit union’s TransAction Financial Empowerment Program, offered in collaboration with Planned Parenthood of Greater New York, provides financing for surgical procedures and hormone therapy, along with legal documentation changes, vocal coaching, wardrobe updates, and more.

Members can apply either for a personal loan of up to $20,000 for one-time expenses related to gender-affirming surgeries and associated costs or a TransAction line of credit that provides up to $20,000 for ongoing transition-related care and expenses.

Referrals from medical providers are required as part of the application, although referrals do not need to provide details on the type of care being provided. Free financial counseling from the credit union and consultative services from Planned Parenthood are also available.

Room To Grow

Adoption or fertility treatments can cost growing families tens of thousands of dollars. That’s a substantial amount of money before a baby even arrives.

To alleviate that burden, Rize Credit Union ($1.2B, Irwindale, CA) offers its Forever Family Loan, which provides up to $50,000 for terms from 12 to 60 months. Borrowers can use the funds for travel, legal costs, and other expenses.

Similar products at the credit union cover medical treatments, including fertility, necessary and elective surgeries, body beautification, and more.

Befitting its Southern California location, Rize also offers quinceañera loans, along with loans for relocation, home repairs, and debt consolidation.

“We decided to make personal loans more personal,” says CEO Jennifer Oliver, noting that consumers don’t always understand what they can use personal loans for.

These loans are identical from a qualifying perspective but packaging them around specific needs helps convey the variety of options available. That also helps keep things manageable for staff, although some specific coding is involved on the back end.

“Whenever [members] choose one of those specialized loans — whether it’s the Forever Family Loan or Home Care Loan or a relocation loan — it shows on their online banking experience with that name, so they know exactly what it is,” Oliver says. “It follows them all the way through the paperwork.”

While debt consolidation is the most popular loan option, the others attract plenty of interest, thanks in part to community partners who help promote them.

“If I was to do it all over again, we’d dedicate more resources to each launch and align the partnerships so they can be supportive of those launches — but that’s coming,” Oliver says. “I believe in building things, exercising a muscle, doing what’s right and setting the organization up for success.”

No Argument Here

As if the cost of undergrad and law school weren’t enough, the fees to take the bar exam — a requirement to practice law anywhere — range from less than $200 to more than $1,400, depending on the state. And that doesn’t include possible late-registration fees, textbooks that can reach $300 each, study materials, and more.

With those hurdles in mind, Harvard Federal Credit Union ($1.2B, Cambridge, MA) offers loans to help defray the cost of preparation and taking the exam. The credit union’s bar loans are designed for students in their final year of law school or recent graduates of Harvard Law, and loan amounts can range from $1,000 to as much as $15,000. Pricing starts at 7% APR, and fixed-rate terms of five or 10 years are available, with quarter-point discounts available in some instances.

U.S. citizenship is not required, and anyone with a social security number, U.S. address, and proof of income may apply.

‘I Do’ (Need A Loan For This Wedding)

Tying the knot? It’ll cost.

According to a 2025 report from The Knot, the average wedding now costs approximately $36,000. That’s a 28% increase compared to 2019, although costs vary by state and the size of the event.

Service Credit Union ($6.0B, Portsmouth, NH) offers wedding loans to help members manage the costs associated with the big day.

“At the core it’s still our personal loan product,” explains Heather Dufourny assistant vice president of consumer lending. “It’s really a marketing technique to meet our members where they are.”

Services prices and structures the wedding loan like its other personal loans, with terms ranging from 36 to 72 months and interest rates from 11.49% to 18% APR. Members who log into online banking can see displays for perpetual preapproval offers — which Dufourny says helps keep the loans top of mind — but many others apply after seeing the offers on the credit union’s website.

The maximum loan amount is $50,000, and Dufourny says demand is seasonal with most requests coming in the spring and summer. Service closed 92 wedding loans in 2024 totaling neraly $1.1 million, an average of about $11,700. Service has closed 87 loans so far this year with a slightly lower average amount funded.

“We’ve had to learn to be cautious because it’s a popular purpose for fraudsters to take advantage of because it’s essentially just cash to you,” says Dufourny, adding that underwriters look closely at credit reports and proof of income documentation to ensure legitimacy.

And if things don’t work out for the happy couple, Service can still be a resource — the credit union doesn’t specifically offer divorce loans but has received applications in the past to cover attorneys’ fees and related costs.

Are Your Loans Meeting The Moment? From tuition to transition, credit unions are getting creative with personal lending — but how do your products perform? With Peer Suite, credit unions can track portfolio trends, analyze performance by loan type, and spot new growth opportunities based on verified real-world data. Book your analysis session with a Callahan advisor today, and walk away with a free, customized performance report.

The post 7 Smart Loans For Life’s Big Moments appeared first on CreditUnions.com.

With more than $10 billion in financing provided to date, the Reston, VA-based company is the largest U.S. provider of Shariah-compliant home financing for Muslim-American families. And now for the first time, another financial institution is originating and selling these mortgages through a correspondent platform: Community Credit Union ($113.5M, Lewiston, ME).

A state-chartered cooperative with approximately 12,700 members, Community Credit Union saw a specific and persistent need in its community. Many Muslim residents were eager to become homeowners but had no interest-free financing option that aligned with their religious beliefs. After nearly a decade of listening, advocating, and partnering with experts, the credit union became the first in the nation to offer Shariah-compliant home financing using Guidance’s Declining Balance Co-ownership Program.

This collaboration isn’t just about a new mortgage program — it’s about values, service, and inclusion. By creating a scalable, compliant model, the two organizations have opened a door for not only the Maine credit union’s market but also other credit unions across the country to serve underserved populations in their own communities.

Here leaders from both institutions explain how the partnership works, what they’ve learned, and why this model aligns so well with credit union cooperative principles.

Instead of interest, the buyer pays a usage fee in exchange for their exclusive use and enjoyment of the home. … The program has been reviewed by world-renowned Islamic scholars and developed with Freddie Mac and 18 law firms to ensure full legal, Shariah, and GSE compliance.

Guidance Residential’s Perspective

John Tuma, Vice President of Strategic Partnerships

What are the core elements that make a mortgage product compliant with Shariah law, and how does Guidance Residential’s Declining Balance Co-ownership Program meet those standards?

John Tuma: Shariah law prohibits the use or receipt of interest (riba) and encourages risk-sharing, fairness, and asset-backed transactions. Our Declining Balance Co-ownership Program uses a model where Guidance and the homebuyer jointly purchase the home. The buyer gradually buys out Guidance’s share over time through fixed monthly payments.

Instead of interest, the buyer pays a usage fee in exchange for their exclusive use and enjoyment of the home. That fee is based on a pre-agreed profit rate. This structure maintains Shariah compliance while aligning with modern mortgage operations. The program has been reviewed by world-renowned Islamic scholars and developed with Freddie Mac and 18 law firms to ensure full legal, Shariah, and GSE compliance.

How does this differ from a standard correspondent lending arrangement?

JT: The key difference is in the contract structure. This is not a loan — it’s a co-ownership agreement. That surprises some partners at first. But operationally, the process is quite familiar. Credit unions originate, process, underwrite, and close the contract using standard Agency guidelines. The documents include a few specialized agreements to ensure Shariah compliance, but we’ve designed everything to integrate easily. After closing, we purchase the contract, securitize it through the GSEs, and handle servicing. It’s a low-friction way to serve a highly motivated, underserved market.

How much demand is there for this kind of product among Muslim-Americans?

JT: We’ve financed more than 40,000 homes, but that’s a fraction of the need. There are more than 3.5 million Muslim-Americans in the United States, and many postpone or avoid homeownership entirely because conventional mortgages aren’t an option for them. We estimate hundreds of thousands would consider purchasing a home if they had a trusted, values-aligned financing option in their community. This represents a major opportunity for credit unions, whose entire industry was founded on and continues to be committed to member service, financial inclusion, and community trust.

How do you work with credit union partners to navigate compliance and regulatory requirements?

JT: Every state and credit union has different regulatory frameworks. In Maine, Community Credit Union worked closely with state lawmakers to clarify that this model fit within the state’s rules. That step won’t be necessary everywhere, but we work with each partner to assess their own regulatory position. We also offer a broker model, available in most states, that simplifies participation even further since Guidance funds the contracts directly. All contracts are underwritten to standard Agency guidelines and are ultimately securitized through Fannie and Freddie, which helps keep the structure familiar and straightforward. Our job is to make this accessible, flexible, and secure for our partners and their members.

Why was now the right time to allow credit unions to originate your program directly?

JT: After 20 years of refinement, we had the platform, compliance structure, and support systems in place. Community Credit Union brought the commitment, local insight, and willingness to do the groundwork. Together, we created a scalable correspondent model that preserves the program’s integrity while expanding access to halal home financing for underserved communities. We’ve since launched a broker platform as well, which is a streamlined option for even easier implementation. Our missions were aligned, the demand was already there — and the Community Credit Union team, under Jennifer’s leadership, helped turn that shared vision of expanding values-based homeownership into a reality.

Why is Shariah-compliant mortgage such a critical piece of values-based financial services for Muslim-American consumers?

JT: Buying a home is one of the most important financial decisions a family makes. If that decision can’t be made in accordance with their values, many families simply delay or forgo homeownership altogether. By offering a Shariah-compliant option, credit unions demonstrate cultural understanding and genuine inclusion.

That builds lasting trust, which can lead to stronger relationships across other products — like checking, savings, and retirement services. This is about more than mortgages. It’s about long-term financial empowerment and meeting communities where they are, with solutions that reflect their principles.

How can credit unions learn more?

JT: We’re here to support you. Reach out to us at partners@guidanceresidential.com to explore how the program works and whether a correspondent or broker model is the right fit for your credit union. There’s no cost to get started, and we provide training, support, and a complete onboarding process.

Community Credit Union’s Perspective

Jennifer Hogan, President/CEO, Community Credit Union

What motivated Community Credit Union to pursue a Shariah-compliant homeownership option, and what did that nearly 10-year journey look like?

Jennifer Hogan: We kept hearing the same thing from members of our local Muslim community: they wanted to buy homes, but they couldn’t do it with traditional interest-based loans. That’s not something we could ignore.

Over the years, we researched, built relationships, and explored what was possible. We found the right partner in Guidance Residential. It took time to align the legal, operational, and compliance aspects, but we’re proud of where we landed.

How big is the potential market locally, and how does this program align with your mission?

JH: There are more than 7,000 Muslim-Americans in Maine, and many of them live in our service area. We’re a CDFI and a low-income designated credit union (LICU), so we exist to serve people who are often overlooked or underserved. Offering Shariah-compliant financing aligns with our mission to promote inclusion, community development, and financial opportunity for everyone we serve.

How does originating a Shariah-compliant contract differ from a conventional loan?

JH: Surprisingly little. The process — application, underwriting, disclosures, closing — is almost identical. Guidance Residential helped us incorporate a few unique documents to ensure Shariah compliance. But we still use standard agency underwriting guidelines. Our team adapted quickly, and the support from Guidance made a big difference.

Did you need to add new staff or change workflows?

JH: No new staff were hired. We designated a few internal champions in lending and compliance and leaned on Guidance’s training and review process. They double-check each file before closing to ensure everything aligns. We may scale up staffing if volume increases, but for now, our existing team is managing it well.

Do you offer other Shariah-compliant financial products?

JH: Yes. We started with non-interest-bearing deposit accounts – basic savings and checking solutions that also align with Islamic principles. That was an important first step and helped build trust with the community. Launching this mortgage program is a continuation of that effort. We plan to keep listening and expanding as we learn more about what our members need.

The post A Shariah-Compliant Path To Homeownership appeared first on CreditUnions.com.

According to the Department of Defense, approximately 400,000 military personnel PCS every year. On the civilian side, approximately 11% of Americans move every year for job-related reasons, according to World Metrics; 75% of those relocations are employer-initiated.

As trusted financial partners, Service Credit Union ($5.6B, Portsmouth, NH) and BCU ($5.9B, Vernon Hills, IL) strive to provide a holistic approach to moving, with targeted loan programs and financial education to help military families avoid loan traps.

Smoother PCS Transitions

Formed in 1957 to serve what is now Pease Air National Guard Base, Service Credit Union still boasts 37% of its 338,000 members as active-duty military, veterans, and their families, primarily from the Air Force and Army.

“We understand how frequent moves can impact financial wellness,” says Tye Jacobson, vice president of overseas operations at Service, which has 54 branches, including 14 in Germany.

Its relocation loan, a flagship offering, provides up to $3,000 for PCS-related expenses such as housing deposits, secondary vehicles, and relocation fees that military reimbursements might fail to cover.

Military relocation loans offer a low-interest, accessible alternative to predatory loans that can entrap service members in costly cycles of debt.

“Our loan gives military members a reliable option during transitions, allowing them to avoid risky lenders so they can better focus on their mission,” says Jacobson, a veteran of 28 years with New Hampshire’s largest credit union.

Money In Minutes. Members For A Lifetime.

When it comes to applying for the loan, approvals often take just minutes. An online PCS checklist and in-branch support also drive home the message that Service Credit Union is committed to making relocation stress-free.

In addition to relocation support, Service provides financial planning and budgeting resources, including educational tools and one-on-one counseling for critical topics such as managing moving expenses and building a savings for long-term goals.

“The biggest ‘to-do’ is to ensure loan products genuinely meet members’ needs,” Jacobson says. “Our role is to provide stability during the uncertainty of relocations, supporting both financial resilience and connection within our community.”

Long-term engagement is also a benefit for both sides of the relationship. By offering access to responsible, affordable PCS loans and ongoing education, Service strives to earn the trust of a lifelong member while helping them safeguard their financial wellbeing.

What Can You Learn From Like-Minded Leaders? Credit unions are responding to the evolving needs of members with a variety of products and services, including relocation assistance. What’s more, they are using expertise from one another to do so. Callahan Roundtables put leaders in the same room to share solutions, solicit feedback, pose questions, and more. Inspiration is a Roundtable away. Learn more today.

Full-Service Support For Corporate Relocations

BCU rolled out its relocation program to serve employees of healthcare equipment leader Baxter International but now helps corporate employees at nearly a dozen Fortune 100 companies, including through BCU’s own Target Credit Union division.

“Relocation is more than moving expenses,” says Joe McCarthy, BCU’s vice president of real estate lending. “It’s making sure our members have a financial roadmap for the future.”

With 35 years of lending experience, McCarthy oversees BCU’s relocation program, which includes a specialized team of lenders and certified relocation professionals (CRPs). It also maintains a robust relocation resource page.

“We support members with an understanding of the relocation landscape,” McCarthy says. “BCU’s team structure means continuity and specialized support for relocating members.”

The cooperative’s relocation program offers creative financing options such as bridge loans, jumbo loans, and other customized products. For example, working in partnership with the employers, BCU offers perks such as reduced closing costs and direct billing to corporate partners for relocation expenses such as real estate agent and appraisal fees.

The Benefit Behind Relocation

Support from programs like relocation loans pulls down the member’s out-of-pocket costs, thereby softening the financial burden of relocating.

“With every interaction we make the relocation financing experience more approachable, more dependable, and less stressful for our members,” McCarthy says.

The credit union has members in all 50 states and abroad, and its Global Client Service Program supports international relocations by helping to ensure foreign transferees can build a U.S.-based banking and credit profile with minimal barriers.

When it comes to long-term engagement and support, BCU, like Service, prioritizes education and support in relocation services that extend beyond loans, savings, and checking. Along with working directly with the credit union’s CRPs, members can take advantage of webinars, on-site presentations, and digital tools that include valuable tips on how to navigate moving challenges.

According to McCarthy, these resources help members achieve a successful relocation experience and build a foundation for ongoing financial wellness.

The post Help On The Homefront appeared first on CreditUnions.com.

Top-Level Takeaways

• Despite its popularity among consumers, a 2024 survey found only 1.5% of credit unions currently offer BNPL.
• Credit unions have reduced BNPL risks by introducing it to members as a post-purchase option.
• Credit unions with BNPL programs report that members who use it largely use it for essential purchases, such as household needs and groceries.

Changes in consumer behavior in the past few years have set the stage for new payments innovations that promise greater convenience and financial stability. Buy Now, Pay Later (BNPL) programs are among the latest trends that have spiked in popularity. A 2023 study from Statista found roughly half of U.S. adults have used BNPL services, and nearly 40% of those who haven’t said they could imagine doing so in the future.

It’s not hard to grasp the appeal. It’s convenient, there are no upfront fees, and borrowers can customize how they pay back a sum over time. There are also no lengthy applications or approval processes, making it easier to obtain than traditional personal loans or credit cards.

But no innovation is without its downsides, and the credit union industry has been slow to embrace the trend.

According to a March 2024 survey from PYMTS and Velera, only 1.5% of credit unions currently offer BNPL. Although nearly half of the survey’s respondents said they plan to introduce a program in the next three to six years, the other half have no plans whatsoever to adopt it.

“Fintechs are the ones providing this for the consumer right now,” says Pierre Cardenas, CEO of Capitol Credit Union ($213.2 M, Austin, TX). “The credit union industry better hop on board because members are going to keep going to these other options first.”

According to Cardenas, Capitol began rolling out a BNPL offering to its members less than a year ago after observing its popularity.

“The consumer has already received this as a mainstream product,” he says. “Either we jump on it, or it’s going to bypass us.”

Buy Now, Pay Later … The Credit Union Way

A common concern about Buy Now, Pay Later is that it can lead to overspending. A 2023 study from the Consumer Financial Protection Bureau found consumers who use BNPL are twice as likely to be delinquent on another credit product.

Credit unions pride themselves on looking after members’ financial health, so rather than adopting a pre-purchase method, Cardenas says the industry is embracing BNPL as a post-purchase option instead.

In general, this is how it works:

1. A member makes purchases with their debit card.
2. They go online and check their institution’s Buy Now, Pay Later plans.
3. They view available offers on eligible purchases and decide which to split.
4. They select the installment plan that works best for them.
5. The purchase amount is then deposited back into their account.

For a member to take advantage of Capitol’s BNPL program, they must have been a member for at least 180 days and be in good standing. Eligible purchases must be from within the past 60 days, be at least $100, and cannot be a cash or cash equivalent purchase. Capitol sets a fixed interest rate of 15% but charges no other fees.

USF Federal Credit Union ($1.1B, Temple Terrace, FL) rolled out a similar post-purchase BNPL program in June.

“[Members have] made a conscious decision to make this purchase with funds already in their account,” says Richard Sellwood, vice president of member experience. “This is an option to say, hey, if you’d like that money back and would rather make a couple of payments on it, we’ll put the money back and you can.”

Like Capitol, USF FCU requires members to be with the credit union for at least 180 days. It also won’t allow members to have more than three BNPL plans open at a time. The credit unions charges a 17.9% interest rate and requires purchases to be at least $100 and no more than $2,500.

A March 2024 study determined Buy Now, Pay Later tools are among the top features consumers want from their payments options. Read more in “Members Want BNPL. How Will You Respond?“

Early Successes And Challenges

With any new offering, there are lessons to learn and adjustments to make.

Sellwood says USF FCU took a “crawl, walk, run” approach with its BNPL rollout.

“We wanted to do some vetting,” he says. “We wanted to look at how often our membership was using other fintech options and examine initial performance first.”

Sellwood says members have opened approximately 350 BNPL plans so far, and the credit union has plans to increase promotion efforts soon.

“Unexpected expenses happen to people all the time,” he says. “BNPL creates some nice flexibility to make it easier for our members.”

For Capitol, Cardenas says participation from members was slow in the first few months.

“I’m looking at the statistics wondering why members are not using ours, and we realized it was in part because they could not choose it at the time of purchase,” the CEO says. “So, we decided to experiment with the next best thing.”

Capitol worked with its vendor to introduce push notifications to alert members through their mobile app that they have purchases eligible for BNPL. Members also receive an email once a week.

“When we had just started, we were getting 30 a month,” Cardenas says. “After we made that change, we’re up to 150 a month. It’s about getting into the psyche of the consumer and providing them with a real, valuable, easy way of doing business.”

The post Buy Now, Pay Later: Fad Or The Future? appeared first on CreditUnions.com.

Comprehensive Verification And Customizable Programs

HFS Financial meticulously verifies essential criteria such as income, credit history, homeownership status, identity, and more. This rigorous verification process ensures your credit union can confidently extend financing to homeowners with high credit scores, substantial incomes, and favorable debt-to-income ratios. Such clients can not only strengthen your credit union’s portfolio but also contribute to increased interest income and overall membership growth.

Moreover, HFS Financial offers customizable lending programs designed to align with your credit union’s risk tolerance and strategic objectives. Whether aiming to diversify the lending portfolio or attract new members through competitive financing options, credit unions can leverage HFS Financial’s expertise to achieve these goals effectively.

Specialized In Home Improvement Financing

Although it specializes in backyard and inground swimming pool financing, HFS Financial also provides access to a wide array of home improvement loan verticals. This specialization allows credit unions to tap into a lucrative market segment that encompasses various renovation projects beyond traditional mortgage offerings.

National Reach With Tailored Solutions

Operating nationwide, HFS Financial collaborates closely with credit unions to tailor lending programs that complement their field of membership (FOM) and underwriting strategies. This tailored approach mirrors the successful partnerships already established with existing lending partners, showcasing HFS Financial’s commitment to supporting credit unions in achieving sustained growth and financial success.

Strong Relationships With Contractors

Home improvement contractors find significant advantages in partnering with HFS Financial, thus making them a viable partner for credit unions serving homeowners.

These advantages include:

• • No-Dealer-Fee Options. Contractors can offer financing without incurring additional costs, making their services more attractive to potential customers.
  • Versatile Financing. HFS Financial supports financing for any type of home project, from small-scale renovations to large-scale remodels.
  • Support and Training. Contractors benefit from no-cost marketing resources, presentation training, and direct access to a dedicated finance manager, streamlining their operations and enhancing customer satisfaction.
  • Flexible Terms. Clients enjoy favorable terms such as 20-year affordable monthly payments, amounts up to $350,000, and no prepayment penalties, making financing accessible and flexible.

Connecting With HFS Financial

Do you want to explore how HFS Financial can enhance your credit union’s balance sheet and attract new members? Contact Mike Sisk, director of lender relations, and Alex Edleman, lender relations executive to discuss how you can leverage HFS Financial’s robust platform and extensive network to meet specific organizational goals.

Mike Sisk

Director of Lender Relations

msisk@hfsfin.com

Alex Edelman

Lender Relations Executive

aedelman@hfsfin.com

A partnership with HFS Financial not only drives financial growth but also reinforces your credit union’s position as a trusted financial partner in the communities you serve.

The post Empower Your Credit Union With Home Improvement Lending appeared first on CreditUnions.com.

Top-Level Takeaways

• First Financial created its own AI/machine learning short-term loan system in three steps that involved extensive cross-enterprise commitment.
• Application abandonment has dropped along with the number of apps that have to go to manual underwriting.

First Financial of Maryland FCU ($1.3B, Sparks, MD) is using staff smarts to create and fine-tune a short-term loan product that relies on artificial intelligence and machine learning.

The credit union’s AnyTime Express Loans offers $1,000, $1,500, or $2,000 with a fixed rate of 5.99% for a 12-month note. Borrowers can apply for loans through online banking or the First Financial mobile app. In turn, the credit union instantly funds loans upon approval.

AnyTime Express is an end-to-end loan application, underwriting, and fulfillment product that’s part of the credit union’s lineup of unsecured Anytime Loans. Members complete a mostly pre-filled application either online or through the credit union’s app.

“The AI/ML decision engine then decides to approve the application and fund the loan or pass it off for a second look to one of our human underwriters,” says Michael Powers, the Maryland cooperative’s chief innovation and strategy officer. “Approved members are presented with loan documents, and upon digital signing, the loan records are created on the core and the members have their funds available immediately.”

The product provides an alternative to payday loans and other short-term products, and the instantaneous nature of the process appeals to any borrower interested in quick access to money.

“Our vision for AnyTime Express is to deliver a low-dollar consumer loan that could be started at the time a member gets out of their car at a retail location and be finished with proceeds in a checking account in less time than it takes to get to the front door of the store,” Powers says.

Seizing The Opportunity

Powers says the credit union knew, fundamentally, it had an effective rules-based automatic approval engine in its LOS; however, many applications and especially subprime credit applications were not automatically approved. Instead, they were frequently approved in manual review.

“We saw the opportunity for machine learning to replicate this behavior and deliver more instant loan decisions and instant funding across the credit spectrum, from prime credit to subprime credit borrowers,” Powers says.

Since its deployment on Oct. 15, 2020, the system has processed approximately 3,000 applications; roughly 40% of those were received outside of business hours.

Powers says the approval rate moves between 60% and 80% because of fluctuations in the credit quality of the applicants. It sends those who don’t make that cut to manual review. The abandonment rate for instantly approved applications is only about 3%, one-fourth that of the abandonment rate for manually approved applications.

A Lift In Sales And Member Satisfaction

According to the innovation officer, management wasn’t necessarily seeking a meaningful reduction of approved application abandonment, but the difference is striking and persistent. He calls it the clearest quantitative example of member satisfaction around getting instant answers and instant funding.

“We all know the value of money; our instant-approval results show the value of timing,” Powers says. “Delaying a response for manual review by even a short interval can lose someone’s attention and discount the value of your offer.”

The credit union also has noted a lift in sales and internal efficiencies from the work.

“Before AnyTime Express, we had seasonal personal loan promotions in the summer and winter, but participation in those pre-approved programs had been waning for years,” he says. “We replaced those pre-approvals with an invitation to apply for an AnyTime Express loan at a rate discount, and volumes have recovered to healthy levels last seen years before. Additionally, AnyTime Express is lower cost and requires less processing labor than the previous pre-approval program.”

The Creation

Creating the AnyTime Express project was a three-stage process that began with a prototype of an AI/ML underwriting decision engine run in a controlled test environment. From there, First Financial built elements for real-time integration into the cooperative’s core and digital banking platforms.

The credit union then invited employees to submit loan applications in a real-time, controlled setting.

“We worked out a number of issues with this beta test and concluded we were prepared to release an improved version to production,” Powers says.

The final result is AnyTime Express is fully integrated with one part of the credit union’s core banking system, one part in its digital banking system, and a third part, the decision engine, running as a web service on-premises. The three parts communicate with one another and their respective back-ends to make it work, Powers says.

Further Refinements And Rollouts

AI/ML technology is all about continuous improvement, and First Financial’s system is no exception.

“There has been additional data collected on approvals, manual reviews, and charge-offs that we can incorporate into re-training the AI/ML system,” Powers says. “We found some notable improvements came from adding rules to the engine to handle some cases.”

Those refinements will help further reduce the number of applications that can meet credit union approval without being sent for time-consuming manual review and better prepare the system to handle the differences as the instant fulfillment process is expanded to other loans at the credit union.

Teamwork Makes This Dream Work

Powers himself brings a distinct skill set to the job. He has a Ph.D. in electrical engineering from the University of Maryland and joined the credit union’s staff in 2017 after 11 years as a member of its board of directors while he held robotics and imaging research posts with General Dynamics and then the U.S. Army.

But Powers is quick to point out that enterprise wide involvement was critical to the instant approval system’s creation and continued evolution.

His innovation strategy team built the core AI/ML decision engine; the IT department constructed the core extensions, online banking widgets, and server resources; and the lending department configured the loan product while determining credit risk and underwriting performance parameters.

“We also had consistent support from our compliance department to ensure fair lending standards were observed from the start and followed throughout,” he says. “Marketing, meanwhile, created the graphics that gave it a visual appeal consistent with our branding and banking app appearance.”

Management Buy-In And Hiring Insight

Powers adds that management buy-in was crucial across every department and functional area, including, he says, those closely involved in the project and others not involved but interested in the outcome.

“Our step-by-step approach to development let everyone see and build confidence in the results of each increment as it built toward an ever-more practical system in an increasingly realistic environment,” Powers says.

He gave a particular shout-out to the lending team for taking a big step into the unknown with impressive optimism, courage, and care.

“Despite the technical demands and considerable unknowns of the work, the team came together with strong collaboration and common purpose,” Powers says.

In true AI/machine learning fashion, the learnings here include how to hire for an enterprise that wants to innovate like this now and going forward. First Financial looks at a variety of characteristics when it considers a candidate. Powers says his favorite is the ability to tolerate ambiguity.

“The people who will be the most productive and the most valuable to a technology development in your organization will be those who can make progress toward the overarching intent of the work despite and sometimes because of limited information, conflicting priorities, unclear feasibility, and undefined methods,” he says. “These conditions are always present to some degree when something original and significant is to be done.”

— This article originally appeared on CreditUnions.com on July 11, 2022.

The post Artificial Intelligence Yields Real Results For This Cooperative’s Short-Term Loan Product appeared first on CreditUnions.com.

Top-Level Takeaways

• • Evergreen Credit Union’s focus on community-driven initiatives and employee engagement has led to impressive growth.
  • The Maine cooperative offers financial solutions that others in the market typically don’t.
  • It also provides a robust salary and benefits package that includes mental wellness support.

The intersection of community engagement and employee empowerment is the sweet spot for peer-besting growth at Evergreen Credit Union ($538.8M, Portland, ME).

The one-time-paper-mill-SEG-turned-community-charter had approximately 20,000 members and $250 million in assets when Jason Lindstrom became president and CEO in November 2016. Today, it has 30,000 members and $550 million in assets.

“We’ve been above 5% year-over-year member growth since 2Q22 and haven’t been below 4% since 2018,” Lindstrom says.

To post those kinds of numbers, the Maine credit union has adapted to member needs and expectations — for example, it keeps three out of its five branches open on Saturdays when other financial institutions close — as well as launched tactics to retain members. But, ultimately, Evergreen credits its empowered employees who go out and get their hands dirty — sometimes literally.

Deep And Meaningful Community Engagement

Central to Evergreen’s growth is its deep and meaningful community engagement that goes beyond cutting checks. The credit union actively participates in community events to build strong relationships with local partners.

For example, Evergreen has helped forge a meaningful — perhaps at first glance uncommon — relationship between the Animal Refuge League of Greater Portland animal shelter and Portland Trails, which maintains more than 70 miles of trails.

“We connected these two organizations and donated the labor to help spread gravel on about a quarter-mile of trail to connect the shelter to a section of trail where people can take dogs on a ‘test walk’ before they adopt them,” says Lindstrom, who now serves as the vice chair of the board of the refuge league.

Along with board volunteer work, Evergreen’s staff also promotes community activities on social media and offers in-kind expertise to small nonprofits.

“Our vice president of training helped the animal refuge league employees with a session on understanding personality types,” Lindstrom says. “That had a lasting impact for them.”

Then there’s Evergreen’s collaboration with the Portland Food Map, an independent directory of local restaurants. The credit union sponsors the food map’s popular date night raffle on Instagram and provides gift cards to local eateries.

“We know our community is passionate about everything outdoors and about the cultural and lifestyle options that Portland has to offer,” Lindstrom says.

Such sponsorships are one way Evergreen ensures it is a good partner that provides meaningful support rather than simply throwing money at community involvement. In turn, this fosters even stronger relationships and more effective community engagement.

Employee Wellbeing Supports Member Growth

Building that community engagement wasn’t instantaneous, but Lindstrom says it is replicable if an institution prioritizes taking care of its own team, too, with a culture that supports and empowers employees.

“Engaging managers and ensuring they align with organizational goals is crucial,” Lindstrom says. “Although it took us a couple of years to get everyone on the same page, the focus on team wellbeing has paid off.”

Since his arrival, Lindstrom has focused on training, salaries, health and wellness benefits (including for mental health), and community involvement opportunities. Importantly, Lindstrom says his own leadership journey to the corner office that started with a position as a part-time teller helps him understand the hardships of a credit union career.

“Experiences like being robbed twice and having a gun to my chest gives me empathy for front-line challenges,” the CEO says. “Understanding their fears and frustrations helps me advocate for necessary changes and improvements.”

Lindstrom proudly notes that Evergreen loses more front-line employees to internal back-office roles than it does to turnover. At the same time, it also values and supports those who prefer to remain in front-office roles.

“Everyone has the chance to grow within the organization,” Lindstrom says. “Employees who feel valued are more likely to go above and beyond in their roles, creating a positive feedback loop that benefits both the credit union and its members.”

Take Your Team To The Next Level. Empower your executive team to communicate, plan, and align throughout the entire calendar year. Callahan’s suite of consulting services can help you do this and more. From strategy briefings and workshops to full-on planning, let our team help your team identify what’s important and build a framework for success. Let’s Start The Conversation.

Dump Trucks And Cannabis

Offering financial solutions that others in the market typically don’t is another growth factor Evergreen’s meaningful-community-engagement strategy feeds. For example, the credit union welcomes small-business borrowers with specific needs.

“A guy needs to buy a $70,000 truck to be used for plowing in the winter and as a dump truck in the summer,” Lindstrom says. “Unless he wants to buy 10 of those trucks, the big banks here aren’t interested, but we are. We’re bouncing along at our MBL cap because of this, but it’s worth it because of the member loyalty and reputation we’re building.”

The legal cannabis business is one area in particular need. Evergreen regularly offers banking services to those businesses and their employees.

“Cannabis is legal in Maine, but many cannabis businesses and their employees can’t find banking services,” Lindstrom says. “We’ve created a space for them, ensuring they don’t have to operate without banking services.”

He adds the credit union just made it through its first exam with “only a couple tweaks,” thanks to a careful, nearly two-year planning and compliance process before adding the first cannabis members. That planning also has made it possible for Evergreen to attract and retain new members in a regulatory sound manner.

Technology Balanced With Personal Service

Personal interactions remain at the heart of Evergreen’s service philosophy, but the cooperative also has also embraced technology to enhance member experiences.

Evergreen offers robust mobile and online banking options that provide convenient, efficient access to services. However, Lindstrom stresses the importance of balancing technology with personal touch.

“Technology is important, but nothing replaces face-to-face interactions,” he says. “Many members prefer personal contact over automated systems.”

To this end, Evergreen also has certified financial coaches in all branches who provide personalized advice. This hybrid approach ensures those who prefer digital solutions have access to top-notch technology and those who value personal interactions can engage directly with staff. The balance has been crucial in attracting and retaining members, Lindstrom says, particularly in an era where many financial institutions are moving toward more impersonal, automated systems.

The Path Forward

Evergreen has consistently grown its member base and its business by deeply embedding itself in the community, balancing technology with personal service, and empowering employees personally and professionally.

That’s also the plan moving forward.

“We’re going to continue providing our team with the resources they need, despite challenges like rising insurance rates and mental health issues — they’re worth the investment,” Lindstrom says. “Providing good training, fostering a positive culture, and offering clear career paths are key. By supporting our team, we ensure they take care of our members, and that will drive continued growth.”

The post Evergreen? Always Growing. appeared first on CreditUnions.com.

Top-Level Takeaways

• Price volatility and environment concerns are pushing consumers to adopt clean energy.
• BIPOC and low-income borrowers are a prime target audience for affordable clean energy loans.
• Federal resources are available to backstop lending and fund new initiatives.

Every day is Earth Day when you’re trying to help save the planet, and with energy costs skyrocketing across the United States, environmental concerns are dovetailing with economic imperatives.

Perhaps no credit union is more vested in the idea of sustainability than Clean Energy Federal Credit Union  ($53.6M, Englewood, CO), a virtual shop that made its first loan in 2018 and now has approximately 8,700 members scattered across nearly every state and U.S. territory.

“Everything we do is going to follow our mission to increase the adoption of clean energy,” says CEO Terri Mickelsen. “We really work to stay in that lane.”

The credit union offers home improvement, vehicle, solar, and geothermal loans and helps borrowers shoulder the cost burden with its Clean Energy for All Loan program, which offers a 50-basis point discount on all its loan types.

Clean Energy for All focuses on increasing access to affordable clean energy loans for Black, Indigenous, and people of color (BIPOC) as well as low-income borrowers. The idea is to level the playing field for those two groups, which typically are hit hardest by high energy costs yet are least able to afford niceties like solar panels and new windows. According to a report from the American Council for an Energy-Efficient Economy, approximately 40% of low-income households spend more than 10% of their income on energy costs; Black and Native American households spend about 45% more than white, non-Hispanic households.

Bill Bynum, president and CEO of Hope Credit Union ($579.2M, Jackson, MS), is well aware of that burden among his nearly 40,000 members living in and around the Mississippi Delta.

“You have to make these loans affordable when you’re talking about people with very limited means, very low net worth, very thin safety nets,” he says. “They’re already making difficult choices navigating inflation and high interest rates and deciding whether to buy food or medicine. That makes it difficult for them to prioritize investments in energy efficiency.”

Hope currently makes electric vehicle (EV) and home improvement loans to homeowners, businesses, churches, and other non-profits. It also is evaluating solar lending, which will open the credit union to a specialty other shops are finding to be popular and profitable.

Solar Power, Partnerships, And Profits

Tucson Old Pueblo Federal Credit Union ($210.1M, Tucson, AZ) has closed more than 2,700 solar loans for more than $85 million, making it the most popular loan in the cooperative’s green-lending portfolio, says Joanna Jackson, who recently became consumer lending manager after five years as sustainable lending manager.

The line of business is highly partner-dependent, and lenders must rigorously vet installers to weed out bad actors, Jackson says. Solar products and services are in high demand, yet financing from even dependable organizations often depends on Wall Street and other private equity, with high interest rates and vendor fees being passed on to customers.

“It’s not uncommon for big finance companies to charge up to 30% of the loan amount just to finance the loan,” Jackson says.

That presents a major opportunity for credit unions. In New England, competitors of UMassFive College Federal Credit Union ($700.8M, Hadley, MA) add 20% to 40%, which helped the credit union attract the business of nearly 1,300 residential solar installations worth $51 million in 2023.

What’s more, solar loans are now becoming a vehicle for loan capitalization.

“We’ve been borrowing and buying brokered CDs to fund our lending but plan to sell a portion of our residential solar loans later this year,” says Rich Kump, president and CEO of UMassFive College FCU. “These are great assets and very desirable.”

According to Kump, most of the credit union’s solar loans are on 10-year terms that historically pay down ahead of time, helped along by borrowers who tend to drop their 30% Renewable Energy Tax Credit onto the principal balance.

Robin Romano, the longtime CEO of MariSol Federal Credit Union ($50.2M, Phoenix, AZ), says she has not seen a solar loan fail in her 25 years at the cooperative.

UMassFive College FCU offers six types of sustainability loans. Learn more in its one-page flyer. Or, check out this flyer to learn more about its solar power lending.

EV Loans Motor Along

Although it’s a new genre, EV lending doesn’t require the specialization of solar-lending programs. The collateral, after all, is just a motor vehicle with a different kind of motor.

“We’ve toyed with a discount for EVs, but our regular auto and truck rates are very competitive, and the member can reduce their rate by up to a half-percent by cashing in some of their Co-op points,” says Kump at UMassFive College FCU. “So we finance EVs but don’t offer anything special.”

That said, it’s a popular niche for some green-focused lenders.

Clean Energy, for example, currently has five different loans for new and used EVs. The programs range from four to six years in length with 110% loan-to-value and a minimum of $3,000 to a maximum of $90,000 for each of them, with rates at this writing ranging from 6.39% to 6.99%. The credit union also offers a program for Tesla financing.

Moreso than financing, access to charging stations is what stands in the way of deeper adoption in many areas.

“As we become an EV nation, it’s a travesty to see that people in the Delta and other rural communities have to drive gas guzzlers while people in more affluent communities have more access to climate-friendly vehicles,” says Bynum at Hope.

He says his shop is looking at installing charging stations around its 23-branch network and can see stations becoming part of Hope’s affordable housing work.

Mickelsen at Clean Energy says most homes in his area don’t typically come with EV chargers in place; however, he expects that to change, “unless and until they come up with a solar car.”

Rising electric vehicle usage has led some institutions to install electric vehicle charging stations at branches. The move could help both the planet and the bottom line. Learn more in “Low Battery? These Credit Unions Can Help.”

Investment And Regulation

Green lending is highly influenced by government policy on the local, state, and national level. Tax incentives come and go, shrink and grow, and so does direct government investment. Perhaps the biggest of all so far is the Greenhouse Gas Reduction Fund (GGRF). It’s a $27 billion investment the EPA is making as part of the Inflation Reduction Act and aims to mobilize financing and private capital for projects in communities across the country.

Inclusiv is getting $1.87 billion of that through the GGRF’s Clean Communities Investment Accelerator, funds it will use to provide grants for capitalization, staffing, training, software, and more.

“We’re at a pre-inflection point where everyone is figuring out how to leverage these dollars,” says Bynum, whose credit union is part of the Inclusiv network. “But lenders like Hope who lead with mission and financial inclusion and opportunity are ready to operate as the proof of concept for more traditional lenders. Together, we can pour these dollars into low-income communities, those places most vulnerable to the effects of climate change.”

State and local programs are now in place that can help lenders buy down interest rates, boost loan reserves, and more. But it’s not just about lending directly. Regulators also play a huge role.

UMassFive College FCU recently won a $650,000 grant from the Clean Energy Center at the Massachusetts Department of Energy Resources to test a pilot designed to decarbonize commercial buildings throughout the commonwealth.

And California is now requiring solar power systems in all new single-family homes, condominiums, and apartment buildings less than three stories high. California and 10 other states, meanwhile, have established targets for utilities to install a specific amount of battery storage to, among other goals, make sure their grids can handle the additional electricity created by residential and commercial solar systems.

Whether that will help convince utilities to remove barriers to residential and community solar growth — such as net metering policies, interconnection and grid access, demand charges, and fixed fees — remains to be seen, but these could be signs of change to come.

Seasons Change: Change Is Gonna Come

Like other loan products, green lending programs also experience their own kind of seasonality.

“We see our largest amount of loan apps in the summer when people start getting those $400 to $600 electric bills,” says Jackson at Tucson Old Pueblo.

However, falling prices and the spread of essential infrastructure to support solar and other sustainable energy sources are poised to push up demand for green lending year-round. Mickelsen at Green Energy says she expects to see costs for solar equipment, for example, to continue falling as they have in the recent past for such things as big-screen TVs.

“As the climate continues to change and as people become more aware of that reality, the need to upgrade your home with the latest and greatest, most energy-efficient products will change, too,” she says.

The need for green lending is out there, and it will continue growing for the foreseeable future.

The post Earth Day Is Every Day For Green Lenders appeared first on CreditUnions.com.