Fintech. Disruption. Digital transformation. Panic! Credit unions are constantly behind, struggling to keep up, always at risk of redundancy… Or are they? In this episode, Kristina Kovacevic, AVP of retail services at Minnesota’s First Alliance Credit Union, discusses “Storybook lending”–the art of prioritizing individual members above everything else–and how it is driving her credit union’s long-term growth and sustainability.
Key takeaways:
00.48: An overview of First Alliance Credit Union–one of an astounding 38 financial institutions serving Rochester, Minnesota.
02.54: While the credit union has strong membership and recently expanded into multiple new counties, the organization’s priority focus is “First Start / Fresh Start” members.
04.23: What fresh start members–people who have made credit mistakes in their past–can expect from First Alliance, and how the credit union serves them using “Storybook lending”.
05.56: How Kristina’s personal experience of moving to the U.S. as a child helps her connect with her membership on a deeper, more personal level.
07.09: First Alliance’s unique, qualitative approach to success metrics.
08.10: The importance of word-of-mouth referrals to organic membership growth.
09.07: How storybook lending supports and enables lending to borrowers who might otherwise be declined through traditional FICO parameters.
10.46: While many credit unions are seeing a rise in delinquencies, First Alliance’s hands-on approach to member engagement and storybook lending has kept delinquencies at a minimum.
14.00: How fintech partnerships are important–but not the sole focus–for First Alliance’s growth. The credit union works with fintech on everything from member outreach and engagement to underwriting, and getting people out of predatory lending cycles.
18.50: “We show up, we listen to your story, we provide opportunities.” The credit union’s simple mission is its most powerful cross-selling tool.
20.20: The need to remind credit union employees that their peers and members aren’t born with financial understanding and even the most common terms and products should always be explained.
21.12: Times are tough and people are extending themselves too far financially. There’s an opportunity for credit unions to help.
Resources Mentioned:
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