As traditional banks have driven away customers with higher and more frequent fees, their Credit Union counterparts have been a beneficiary of members seeking lower cost banking. The migration may have grown accounts but has done little of late for overall loan growth. In fact, at an economic forum in the fall of 2012, the senior economist for the Credit Union National Association (CUNA) reported that 2010 represented the first year that loan growth actually declined. According to the economist, 2013 will be a year where households are expected to release some pent up demand for autos, furniture and appliances.
Credit Unions now more than ever need data, analytics and risk management in order to grow their loan portfolios and capture the anticipated growth in consumer borrowing. Some have even instituted competitive short term loan products, and by partnering with FactorTrust they can position themselves to enter the space with more confidence as they open their doors to the underbanked population.
FactorTrust delivers unparalleled insight into the underbanked consumer segment by analyzing more than 800 existing and derived data attributes with a world-class team of statisticians with extensive experience in consumer credit. FactorTrust is the only alternative Consumer Reporting Agency with a scoring model built exclusively on proprietary data, allowing Credit Unions to make more accurate, profitable decisions.