The document discusses the need for speed in member business lending in today's fast-paced world. It notes that customers now expect quick responses and decisions due to influences like Amazon. While different generations have different needs, speed is important to all members. The document compares the speed of loans at credit unions, banks, and alternative lenders. It emphasizes gaining an advantage through streamlining application and decision processes with tools like automated underwriting. It warns that gaining speed requires strong policies, guidelines, and expertise to manage risk. The conclusion encourages assessing readiness to compete based on technology, culture, and team capabilities.
4. Confidential & Privileged DocumentConfidential & Privileged Document
Speed, speed, speed
• Have you noticed how fast everything seems to move today?
• How do you offer members what they really need and in a
timely manner?
• Is the need for speed outstripping your resources?
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Speed, speed, speed
• Think about it….
– Amazon thinks for the customer
– Amazon moves fast
– Amazon doesn’t ask for much in return
• Just your money
• And information
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Speed, speed, speed
• We’ve all heard this is driven by the MILLENNIALS
• Is it, really?
• Every generation has it’s own need for speed
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US Census Bureau
Greatest Gen
1%
Silent Gen
9%
Gen-X
20%
Gen-Z
22%
Millennials
25%
Baby Boomers
23%
Total US Population by Generation
9. Confidential & Privileged DocumentConfidential & Privileged Document
Who are your members?
• Ave. age for members:
– 48.5 years
• Ave. age for nonmembers:
– 45.5 years
• Ave. age community bank:
– 43.4 years
• US Census Median Age:
– 37.7 years as of 2014
Members Nonmembers
Average age 48.5 45.5
Age 18 to 24 7% 18%
Ages 25 to 44 35 34
Gender
Male 45 50
Female 55 50
Married 65 47
Education
completed
High school or less 29 49
College degree or
more
40 24
Employed full time 54 39
Own home 76 52
Have bank account 86% 65%
Source: The source for all tables/figures is CUNA’s 2014-2015 National
Member & Nonmember Survey, unless otherwise noted.
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Speed, speed, speed
• Baby boomers (1946-1964)
– Very disciplined
– Structure
– Tech acquired
– “You have my information,
I have been a member
for years, give me my loan”
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Speed, speed, speed
• Generation X (1965-1980)
– Work/life balance
– Informal
– Tech savvy
– “I can fill out the application
while I am taking the kids to
soccer. Send me an email
when I am approved.”
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Speed, speed, speed
• Millennials (1981-1998) or
• Generation Y (1999-2015)
– Fast paced
– Work/life balance
– Mobile first/digitally native
– “Let’s meet for coffee, and I’ll tell
you about my business idea. Text
me a date/time.”
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Speed, speed, speed
Regardless of the
generation, all Members
want one thing from you-
GREAT MEMBER SERVICE
…and in many instances
that is defined by SPEED
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What’s the speed of the competition?
60
days
Large Bank Local Bank
20
days
Non-
Traditional
7
days
Alt
Lenders
Micro Bus
P2P
24 72
hours hours
Source: Business Money Today.com
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Avoid being a commodity
93 YEARS TO BUILD
610,000 ROOMS, 88 COUNTRIES
4 YEARS TO AMASS
650,000 ROOMS, 192 COUNTRIES
18. Lanes for gain
• Where can you gain the inside track?
– Application process
– Decision
Confidential & Privileged Document
19. The Baker Hill NextGen lending process
Confidential & Privileged Document
Internet
Branch Call Center Remote UserWebsite Relationship
Management
Retrieve
credit
bureaus
Submit
application
Validate application
data
Score
application
Bank decisions
application
Analyze data
and scores
Verification &
collateral evaluation
Document
preparation
Consumer loan
or business line
Recommend
pricing and decision
Internet
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Lanes for gain
• Application process
– Web portal with simplified application
– Member can apply for business loan and attach
financial statements
– Existing member information prefills
– 24/7 availability
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24. Confidential & Privileged DocumentConfidential & Privileged Document
Apply the brakes!
How do you gain and maintain speed without
crashing?
A strong pit crew!
25. The pit crew
• Loan policy and procedures
• Product guidelines
• Your team of experts
• Know your risks
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27. For the win!
• Do you have systems in place for
– Web applications
– Score based decisions
– Loan Origination System
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28. Get psyched for the win
• If not, why?
– Culture
– Technology
– Team
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1
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What about you?
• Where does your
credit union rank?
– Ready to race!
– Looking at race
sponsors
– Still driving to the
track
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What about you?
• Tocarry the victory
flag
– Know your member
base
– Look at consumer
technology wins
– Have a plan and a
purpose
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