Lenders need to be prepared for continual and often rapid shifts in the economy.
The lending environment is undergoing an evolution. The continual entry of new players—especially on the Internet—has sharpened competitive knives that are cutting into credit union income. Business loans are an avenue for lenders to travel, since non-interest income is becoming so critical to survival.
Business loans are a natural choice for credit unions’ survival given their close relationships with members and community ties. And more Americans are starting small businesses.