first_img 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr 5 factors from the alternative lending space for CUs to considerby: Brad KimeAccording to a Feb. 25, 2014, report in American Banker, Lending Club had $3.5 million in originations in 2007, its first year of originations. That amount has climbed to $3.4 billion in total loans, with $2 billion originated in 2013. And Lending Club did $1 billion in originations in credit card consolidations during the second quarter of 2014.Lending Club is an example of an alternative lender—an organization offering one or more loan options to consumers and business owners, outside of a traditional financial institution loan. These alternative options have been most commonly used when an individual or business owner cannot obtain a traditional loan for any number of reasons.Notably, alternative lenders are also going after the small loans that banks may find unprofitable or of little interest—credit card debt consolidations, for instance—loans that are traditionally made by credit unions.Models used by alternative lenders are becoming more significant in the financial services industry, and the companies that espouse them are gaining a greater share of the $11 trillion consumer loan market. So it is imperative that credit union executives understand and adapt to this competitive threat. Consider the following five factors. continue reading »last_img

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