GUEST JEFF LYONS
You can’t move forward without first looking back! In today’s Credit Union Conversations, Mark speaks with Jeff Lyons, COO of MBFS, about what happened in the credit union industry in 2021. Mark and Jeff discuss the most surprising statistics and major changes to the business lending portfolio. It’s no surprise that COVID is still a topic of discussion and Mark and Jeff talk about how it continues to impact staffing and rising interest rates. They share their thoughts on how credit unions can thrive by focusing on repeat customers and connecting with more small businesses.
IN THIS EPISODE:
- [00:52] Jeff Lyons Introduction
- [02:11] Latest in the credit union industry
- [05:19] Business lending portfolio
- [07:44] Major headlines from 2021
- [12:07] Delinquency and interest rates
- [18:56] Operating expenses and pricing strategy
- [27:41] Client success story
- One of the credit union’s most surprising statistics from 2021 was the amount of business loans that it made. There were 60,000, which is really strong for the industry.
- The credit union industry is shifting towards bigger loans which also means bigger swings in terms of delinquency. It’s a double-edged sword. Bigger loans and bigger dollars means that charge offs will be larger too.
- The credit union industry can’t compete against the big guys’ interest rates. The key to thriving is to connect with small businesses, take care of your good customers and take care of repeat customers. Be diligent and keep an ear on the ground to see where rates are going.
- It’s going to be important for credit unions to look more closely at a business’ tax returns and financials because the labor supplies and cost of goods could be nothing like what it is today.
Jeff Lyons is the COO of MBFS and leads the sales and credit divisions. Jeff joined MBFS after a long career leading a business lending department at a credit union as well as a tenure as a successful small business owner.
Everyone we talk to who came over from banking into the credit union world, says how it’s so friendly here. There’s no rivals, everyone gets along and that’s when that participation market thrives in the credit union space.Jeff Lyons
I think one of the keys for credit unions over the next two to three years is going to be connecting with small businesses.Mark Ritter