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To Maximize Growth, Avoid These MBL Inefficiency Sources

Eliminating sources of inefficiencies will prove beneficial to credit union employees and small business members.

By Mike Horrocks | Updated on August 03, 2018
Learn best practices for a successful MBL program.

Small businesses are among the most valuable members for credit unions. However, credit unions oftentimes process member business loans the same way they would process large commercial loans, resulting in MBL inefficiencies. These inefficiencies not only reduce profit margins in the portfolio – they can also negatively impact the member experience.

As interest rates continue rising, overly complicated MBL processes can make it difficult for credit unions to grow their portfolios, leading them to either spend additional marketing dollars to attract more prospective borrowers or loosen underwriting criteria to approve a larger number of existing applicants. Additionally, a credit union’s lack of efficiency means that small businesses, even those with adequate credit history, will have to wait several days for a credit decision.

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