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President and CEO of Allied Solutions Pete Hilger Thursday dove into the lending landscape before, during and after the pandemic and provided insights into how credit unions can adapt. Hilger encouraged credit unions to be bold and proactive as they navigate and leverage the new lending and risk management environment.

“If you think about the investments we were all making to prepare for big data, digital, whether we have branches or don’t, and how we interact with our members - one of the things that this pandemic has provided is an opportunity to really, out of necessity, accelerate getting to those long term benefits that are going to make us more competitive in the industry we represent,” said Hilger.

Hilger noted where potential challenges may arise, such as a spike in refinancing applications, the need to leverage new technology for lending services, a highly competitive market with lower consumer demand for loans, and a decrease in new loan originations. He offered resources and ideas for credit unions looking to be creative in the face of challenges, and encouraged outsourcing where possible.

In addition, Hilger noted how further complications arise when face-to-face interactions are nearly impossible.

While credit unions might struggle to compete with things like longer terms and interest free lending solutions, Hilger suggested that credit unions can come up with a “mixed and sound portfolio” by combining some of the many strategies available in the new lending environment.

“These things are really going to affect how you decide to lend, how you borrow, and how you evaluate your consumers because there is definitely a big increased risk as you write your loans,” said Hilger.

When discussing risk management, Hilger urged credit unions to take a look at their fraud tools, policies and procedures that will help protect them.

“The bad guys are bigger than ever,” remarked Hilger. Although there is nothing out there to protect you from every type of fraud, Hilger noted, but there are great ways to minimize it.

NAFCU's landmark State of the Industry event virtually brought together credit union executives and board members from across the country to dissect current trends and examine what’s coming next. Sessions from the event, including Hilger's presentation, will be available to watch on-demand online and on the event app Monday.