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LenderHub

SWBC's LenderHub blog is a one-stop resource for lenders.

 

4 Ways to Make Your Financial Institution a Borrower's First Choice

In this age of digital communication, smartphones, smartwatches, and instant information, consumers don’t have to look far—or at all (Hello, digital ad retargeting!)—to find companies that are chomping at the bit to serve them in just about any capacity. While this is great for consumers, it poses a challenge to lenders. How can financial institutions rise above the increasingly large pool of competitors to win a borrower’s business? Fortunately, traditional financial institutions already offer their customers many advantages, and focusing on those existing advantages is the key to winning business and deepening your existing relationship.

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How to Deal with Hostile Debtors when Recovering Collateral

Everybody in lending knows that collateral recovery and vehicle repossessions are unpleasant and unenjoyable for all parties involved. Unfortunately, it's a part of business in auto lending. And as long as your financial institution and its staff are tracking collateral and assets, you'll encounter angry, hostile borrowers who will make asset collection as difficult as possible. Here are some tips for how to deal with hostile debtors when your financial institution staff, field agents, and repossession agents are trying to recover collateral.

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Growing Non-Interest Income with Payment Protection

In the everyday hustle and bustle that occurs at your financial institution, it can be easy to wander off the path and lose focus. It happened to Texans Credit Union, but they were ultimately able to regain focus, leading them back to their philosophy to generate sales through service. And focus on what’s important to them--their members!

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How Improved Consumer Confidence Can Lead to Increased Debt

When we consider the U.S. economy, we see good and bad news. The good news is that we've almost reached full employment, and consumers are feeling confident about their ability to maintain a stable income, make large purchases, and repay loans. The bad news is that confidence may be misplaced, since U.S. consumers’ credit card debt is at an all-time high, and delinquencies are rising.

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Three Tips for Retaining Customers with Overdrawn Accounts

No matter the industry, customer retention should play a critical role in your business model—and financial institutions are no exception. While acquiring new customers is always top of mind for financial institutions, retaining existing customers might be a smarter business move when it comes to growing and remaining profitable.

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How Credit Card Delinquencies Affect Your Bottom Line

It's a sad fact that good news is rarely 100% positive; usually we can expect some undesirable result from sunny situations. The U.S. economy's recovery after the Great Recession is a perfect example. While we're pleased about low unemployment and consumer spending in support of employment and economic growth, the lending industry is beginning to see a negative byproduct of that improved economy: rising credit card delinquency.

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Columbine FCU Finds Indirect Lending Success with Hybrid CPI

When a Collateral Protection Insurance (CPI) program is implemented correctly, the program protects the lender and borrower in the event a customer fails to update their auto insurance status. As the Consumer Financial Protection Bureau (CFPB) continues to crack down on unsavory insurance tracking tactics by banks and underwriters, your financial institution should compare program options and determine if traditional CPI or Hybrid CPI is the better choice for your risk management strategy.

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How Longer Auto Loan Terms Impact Your Financial Institution

Long-term auto loans are known to be riskier, so why are they increasing in popularity when it comes to auto lending? In the auto industry, it’s not uncommon for consumers to have negative equity in their vehicle. Consumers want the latest and greatest when it comes to savvy technology and features so they upgrade their vehicles, and with that comes a cost. In order to keep costs down, many consumers are opting for longer terms in order to keep their payments affordable. But, does this set them up for financial failure?

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Dude, Where's My Car?

First things, first. We've all forgotten at some point in our lives where we've parked the car. As we get older, it doesn't get any easier, unfortunately. Unlike those 'dude, where's my car' moments, your borrowers may purposefully not want to be found as they skip out on their loan by missing payments.

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Gain a New Perspective on Credit Life Insurance

In the financial services industry, it is widely known that credit life insurance pays off the outstanding loan balance to which it is attached. But have you ever really realized how credit insurance is a key component in serving American households who may have no life insurance at all—that is, up until the point where you, the lender, offer it. According to LIMRA’s 2016 Life Insurance Ownership Study, 37 million households don’t own any life insurance coverage whatsoever. In addition, more than 10% of all U.S. Households said they would have trouble covering everyday living expenses after several months if the primary wage earner died. I think it would be safe to assume that the primary wage earner was definitely the borrower or co-borrower on their existing loans.

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