Collections and underwriting are at opposite ends of the lending spectrum but what can we learn from each other? Do you regularly look at critical items such as the application process, the verification process, and the collection process to determine if there were steps in the process that may have prevented a loss? 

A day is coming (soon) when human beings are removed from the loan decision. Is your credit union discussing the impact on your lending portfolio and delivery channels?  

During this session, we will discuss the history of ML/AI in lending, the progression of automated decisions, and the challenges presented to credit unions.  

We will cover:

• How does ML/AI replicate a loan decision?
• How can you extend your credit risk appetite across space and time?
• What are regulatory concerns and challenges?
• How confident are you in your metrics today?
• What problems will you solve and what new problems will you create? 

Learn how to differentiate yourself from the competition and gain market share by becoming the best choice for mortgages among borrowers and Realtors. Enhance your reputation by aligning your market, message, and media. Discover untapped markets for additional business, understand the importance of content marketing, know what your members value in a lender, create unique competitive advantage,s and examine a framework for selecting Realtor partners. 

Join Tracy as she shares her insights around using more areas of the credit union to grow loans. How can we more effectively grow the lending business by mobilizing branch staff and call center staff. We all have a role to play! 

This session will discuss the interplay of equity/fair lending in pricing climate risk into climate-vulnerable areas and how credit unions could navigate these two, at times competing, priorities.  

Questions to explore:

• Should there be different product pricing to reflect climate risk? For example:
• Better auto loan rates for EVs vs. combustion engine vehicles
• Better portfolio mortgage rates for homes with alternative energy sources, such as solar panels, EV charging capability, etc.
• How can risk-based pricing models be expanded to include climate risk?

It is well established that risk-based pricing is the most effective way to avoid Fair Lending concerns. While it is the most objective method, current models must be adjusted to achieve equity. One way to accomplish this is to add data points to the risk rating model that benefit the underserved/unbanked communities. For example, credit for on-time rent payments vs. home ownership, credit for on-time payment of cell phone accounts--which do not reflect on a consumer credit report unless there is a negative rating.  

FinTechs are currently working to incorporate alternative data points to increase the pool of eligible borrowers. Ultimately, credit unions will need to develop risk models that evaluate the total profile of the borrower including the ability to quantify the financial impact of climate risk on loan repayment.