For most communities, small businesses are the engines that fuel the local economy. With the recent pandemic, new opportunities have arisen for credit unions to serve their small business members, such as through digital experiences and the cross-selling of cash-management business services to help members streamline their business processes. All these opportunities allow credit unions to increase the depth of your relationships with your small business members and, in turn, the depth and breadth of services they offer to our local communities.
According to an Aite Group survey of U.S. banks conducted earlier this year, small business digital transaction volumes have skyrocketed. This includes transaction volumes for online banking performed by small businesses since the onslaught of the pandemic, as well as mobile banking and payments. In addition, the Aite Group/Deluxe Survey of 100 Small Businesses earlier this year revealed that more than 50% of survey respondents saw a decrease in the number of paper checks in 2020 vs. 2018. The survey also noted the wide variety of digital payment types businesses are using, and small businesses seem to be aware of the many use cases for digital, including real-time payment options.
This is good news for credit unions that have traditionally had stronger loan solutions for business members vs. payment services. It’s also good news for many of you who want to grow your revenue by growing your business services. Now is the time for your credit union to analyze if you are offering the kinds of payment solutions (such as mobile business capture, business wires, business ACH, faster/real-time payments) that meet your business members’ expectations by enabling greater efficiency through convenience and self-service. If your credit union is not already doing so, I encourage you to begin supporting a full breadth of business payment options and create a better pathway to digital solutions while also helping to make your existing methods more efficient.
How Credit Unions are Enhancing their Small Business Lending
Live webinar: November 17
Hear directly from the Chief Credit Officer for UMassFive College Credit Union on how the Digital Business Lending Center helped keep UMassFive’s lending technology up to date for their membership and made the process more streamlined and cost-effective
It’s understandable that some credit unions may have concerns about offering additional business services and technologies. Maybe you feel like your credit union doesn’t have the resource expertise to build and support new systems and products that are necessary to reach your members’ needs. Whether that’s the case or not, it’s important to keep in mind that many small business members choose banks for their financial needs simply because they aren’t aware of the business services credit unions provide. But you can change that, and fortunately, Corporate One has a full suite of cost-effective business service solutions to help you help your small business members. I hope you’ll reach out to me or your personal member success consultant if you’d like more information on any of these solutions.
Speaking of solutions, Lucro Commercial Solutions, one of our CUSOs, helps credit unions and community lenders thrive by maximizing commercial lending services. Whether it's support with underwriting, servicing, and documentation services for loans, or developing commercial lending policies and procedures, Lucro helps credit unions get the most out of their portfolios. I encourage you to read this month’s feature article, which highlights how you can upgrade your small business lending program with Lucro. The article also includes an invitation to attend a live webinar in November to hear directly from the Chief Credit Officer for UMassFive College Credit Union on how Lucro’s Digital Business Lending Center helped keep UMassFive’s lending technology up to date for their membership and made the process more streamlined and cost-effective.