Lending Challenges Unchanged: Aite Group
Credit unions were more concerned about interest rate risk than their banks counterparts in 2013, according to a recent report from research firm Aite Group.
The report, Top U.S. Lenders Tackle Risk and IT Challenges: Not Their First Rodeo, was based upon a 2013 follow-up survey among lenders who participated in 2011 lending survey by Aite. That first survey asked about the lenders' most pressing concerns, which at the time included managing troubled portfolios, portfolio growth and regulatory uncertainly.
In 2011, 72% of the interviewees chose regulations as the biggest challenge that lending managers were facing, according to Aite. By 2013, when most lenders had expected to be moving forward, a full 95% placed compliance and regulations atop the leader board. Interest rate risk, particularly in mortgage and home equity portfolios, ranked second on the challenge list, with 50% of respondents finding it very challenging or extremely challenging.