October 16th, 2018

Business Lending: How Credit Unions Can Raise Their Profile

By Miranda Glancy
Originally published by Equifax Insights

As credit unions look for ways to expand offerings and diversify asset portfolios, one area that is often overlooked is business lending. Many credit unions have avoided business loans altogether, focusing instead on individual members, and occasionally, on pass-through entities that involved their members.

However, over the past year, business loans by credit unions grew by more than 23%[1] – possibly because new rules adopted by the National Credit Union Administration in 2017 now allow credit unions to set their own underwriting requirements and establish their own business lending policies. This change is allowing credit unions to compete in the business lending arena — with positive results.

For small businesses, in particular, credit unions can offer a very attractive alternative to banks. Credit unions may offer lower rates, faster loan approval, higher rates on savings and better customer service. Small businesses often want loans to expand their business or pursue new opportunities, and they may even pay a higher rate to have their loan application processed more quickly and without the hassles of traditional paperwork.[2]

In terms of loan size and risk profile, credit unions and small- to mid-size businesses may be a perfect match.

According to a 2016 survey by the Federal Reserve:

  • More than 55% of small business owners are looking for loans of $100,000 or less
  • 65% of those were applying for loans to expand their business or pursue a new business opportunity
  • Small businesses also report a high rate of lender satisfaction with credit unions: 78% reported they were satisfied with their credit union experience, versus 61% for large banks and 46% with online lenders

Technology lends a hand for business lending

How can you find new business lending customers? Right at your fingertips, as up to 21% of members could also be small business owners, according to Equifax research. A data linking solution could help uncover connections between individuals who are also owners or principals of small businesses. This insight could uncover opportunities to offer personalized customer service or to market small business loans.

Some credit unions are finding that digital technologies help them improve their business lending strategy. Due to high administrative costs, smaller loans typically aren’t all that attractive to the big banks. But for credit unions, they can be a cost-effective addition to the loan portfolio. By automating certain aspects of loan application, processing and servicing, credit unions can lower the cost of originating smaller loans.

Credit unions help support the backbone of their communities. Therefore, raising your profile and increasing that support through business lending is a strategy that can make good business sense. To learn more about how credit unions can expand commercial lending offerings, contact us.

[1] Jim DuPlessis, “Loan Growth Revs Up—Yet Again.” Credit Union Times. June 26, 2018 [CUSO’s Credit Union Trends Report]

[2] Roy Urrico, “Artificial Intelligence Helps Credit Unions Book More Loans,” Credit Union Times. January 2, 2018.

October 15th, 2018

Equifax and Yodlee to Accelerate the Digital Mortgage Process

ATLANTA, Oct. 15, 2018 /PRNewswire/ -- Equifax Inc. (NYSE: EFX), a global information solutions company, today announced that it is working with Yodlee, a financial data aggregation and data analytics platform, to help simplify the mortgage loan process by making it easier for lenders to derive insights from borrowers' financial data.

This collaboration provides Equifax with access to real-time asset and income information on prospective customers who have granted permission and helps streamline loan production, reduce fraud exposure in the application process, and give banks, loan originators and lenders additional tools to assess risks in underwriting and portfolio management.

"Changing buyer behaviors, as well as advanced data and insights, are transforming the lending industry," said Craig Crabtree, Senior Vice President and General Manager, Equifax Mortgage Services. "Complementing the robust suite of data and analytics that Equifax offers, this collaboration with Yodlee advances the mortgage process to ensure that prospecting, qualifying and verifying processes keep pace with evolving customer needs and become more inclusive for credit-worthy borrowers."

Equifax manages the nation's largest centralized repository of income and employment verifications, powered by The Work Number, a proprietary data asset containing more than 350 million payroll records. Through the collaboration with Yodlee, Equifax is enhancing its already robust verification offering. The addition of asset data will help Equifax provide the industry with a fully rounded solution for verifying borrower income, assets and employment, all delivered in a seamless electronic document and API flow.

"By utilizing our data intelligence, based on comprehensive consumer and small-business financial data available across banking, credit and wealth management, this collaboration can quickly move the mortgage lending industry to the next level of actionable, paperless processes," said Brandon Rembe, SVP, Products, Yodlee. "While this collaboration begins in mortgage, we believe it will eventually benefit the entire lending ecosystem."

Follow our product news on Twitter at @EquifaxInsights and on LinkedIn at Equifax Business Insights.

About Equifax

Equifax is a global information solutions company that uses trusted unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.

Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 10,800 employees worldwide.

FOR MORE INFORMATION

Wyatt Jefferies
Media Relations
404-885-8907
Wyatt.jefferies@equifax.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/equifax-and-yodlee-to-accelerate-the-digital-mortgage-process-with-innovative-verification-products-300730732.html

SOURCE Equifax Inc.

October 15th, 2018

Equifax Joins Forces with Freddie Mac for a Faster, Easier Lending Experience

ATLANTA, Oct. 15, 2018 /PRNewswire/ -- Equifax Inc. (NYSE: EFX), a global information solutions company, today announced that it is working with Freddie Mac to create a simpler, faster and less costly path for lenders, and ultimately consumers, through its income verification tool, The Work Number®. The income data will be used as part of Freddie Mac Loan AdvisorSM automated income and asset assessment capabilities designed to make the mortgage origination process easier and more efficient, from point-of-sale to securitization.

"We're focused on helping our lenders reduce costs, maintain high quality loans and deliver a superior borrower experience," said Samuel E. Oliver III, Freddie Mac Vice President, Major Project Execution, Single Family. "Our collaboration with Equifax to expedite the assessment of income is giving our clients this competitive advantage – the Freddie EdgeSM."
"We're thrilled to be working with Freddie Mac to reimagine and automate the mortgage experience and to ultimately provide the industry with insights to help drive more informed lending decisions," said Jennifer Henry, Vice President of Equifax Mortgage Services. "We now support the two most prominent GSEs which gives lenders the flexibility they require to deliver a superior digitally-empowered customer experience."

The Work Number database is the nation's largest centralized repository of payroll data, managed by Equifax, and contains more than 350 million payroll records. Equifax made its income verification data available to Freddie Mac last year as part of a limited release. Freddie Mac plans to offer it broadly to its clients later this year.

Through Loan Product Advisor®, the cornerstone of Freddie Mac Loan Advisor Suite®, automated income and asset assessment capabilities provide lenders with confidence through relief from certain representations and warranties. It also addresses a top concern of many today: taking cost out of the origination process for lenders and borrowers.

Follow our product news on Twitter at @EquifaxInsights and on LinkedIn at Equifax Business Insights.

About Equifax

Equifax is a global information solutions company that uses trusted unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.

Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 10,800 employees worldwide.

About Freddie Mac

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

FOR MORE INFORMATION

Wyatt Jefferies
Media Relations
404-885-8907
Wyatt.jefferies@equifax.com

View original content to download multimedia: http://www.prnewswire.com/news-releases/equifax-joins-forces-with-freddie-mac-for-a-faster-easier-lending-experience-300730936.html

SOURCE Equifax Inc.

September 26th, 2018

API FAQs

A live question-and-answer session with Mathew Dragatsis, CEO and Founder of Radiant Solutions

APIs... SDKs... SaaS... Rarely does an executive team meeting or board review pass today without mention of a custom technology or system integration need. How does one make sense of it all?

In our Q&A with Mathew Dragatsis, CEO of Radiant Solutions, we will take your questions about modern systems integrations and provide basic answers that are simple to understand. We will also outline some industry-leading solutions that Radiant has delivered to the nation's largest credit grantors to solve real-world problems with custom-fit technology.

Related: Radiant Solutions

We will answer your questions, and you will learn:

  1. Fundamental principles that govern Application Programming Interfaces (APIs) and Software Developer Kits (SDKs)
  2. Tools and resources used to connect today's transactional systems
  3. Real-world examples of top 5 bank systems integrations and how you can be a top tech performer

September 26th, 2018

Automate and Win

A live virtual interview with John Keilholz, Senior Vice President of Consumer Lending at Hancock Whitney Bank

With each passing legislative session, the regulatory compliance burden gets heavier. How do small to medium-sized financial services providers stay true to their charter of serving their markets?

One answer is outsourcing disclosure fulfillment. In this session, you'll learn how Hancock Whitney Bank ($27B, Gulfport MS) found operational efficiency through automating many of their consumer lending disclosures. We will be joined by John Keilholz, Senior Vice President of Consumer Lending at Hancock Whitney. He will share how Confluent Strategies has driven a consistent delivery of notices while also reducing their cost footprint. Register for our free session to learn how you too can Automate and WIN with Confluent Strategies.


Related: Confluent Strategies Helps $27B Regional Bank Meet FCRA Compliance


Download Slides [PDF]

Watch and learn:

  1. What types of notices are currently being outsourced
  2. The process and data exchange needed for an outsourced notice
  3. How a regional bank found efficiency without losing control through process automation

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