Ep 4 - Credit Union Insights with CapEd CU

Consumer Lending Perspectives

Host, Jeff Bogan, CFO at Upgrade, speaks with Jeremy Sankwich, Vice President of Consumer Lending at CapEd Credit Union in Meridian, Idaho. Jeremy brings a wealth of knowledge to the conversation about the evolving landscape of credit unions. Together, they explore how CapEd redefines the member experience by focusing on innovation and relationship-building.

They delve into essential topics, including auto lending, Loss-given default, the use of AI in credit research, and the significance of succession planning for boards. Additionally, they highlight innovative lending strategies, the importance of fostering strong member relationships while improving the online experience, and CapEd's steadfast dedication to delivering community-centered financial solutions.

"We have to be careful that we don't proactively reprice our entire balance sheet on the asset side. We also want to retain these members." - Jeremy Sankwich

“Let's stop that cycle and coach them into qualification one-on-one.” - Jeremy Sankwich

“We have two kinds of criteria that we look for in lending, loss given default and probability given default.“ - Jeremy Sankwich

IN THIS EPISODE:

● [0:30] Jeremy shares his background and his views on consumer lending

● [8:32] With rate cuts, members will be interested in refinancing and the cooperation between Fintech and credit unions

● [12:41] How the credit union supports their members and community

● [15:54] Will the political administration change be good for the credit union field

● [20:51] Discussion of artificial intelligence and loss-given default

● [27:51] Discussion of auto lending

● [31:18] Concerns regarding CEOs and C-Suite retirements

● [33:30] Chartered numbers of credit unions are falling, and the importance of succession planning

KEY TAKEAWAYS:

● With rate cuts, credit unions become go-to institutions for refinancing as members seek better terms. This "great refi swap" trend underscores the importance of credit unions offering competitive refinancing options.

● Fintech collaboration is key, and credit unions align through the ACU and GoWest trade associations to find suitable partners. These partnerships enable credit unions to integrate innovative technology while maintaining member-centric values.

● Boards must prioritize succession planning to ensure continuity and avoid the risk of mergers.

● Customers now expect online experiences similar to Amazon or Google, setting a high standard for user interfaces. Credit unions must invest in their digital platforms by 2025 to stay competitive in an evolving landscape.

RESOURCE LINKS

CapEd Credit Union - Website

Jeremy Sankwich - LinkedIn

America’s Credit Unions - Website

GoWest Association - Website

ABOUT THE GUEST:

Jeremy Sankwich, VP of Consumer Lending at CapEd Credit Union, has extensive expertise in portfolio management, auto lending, residential real estate lending, home improvement lending and financial counseling. Over the years, he has led lending teams while working with Verity Credit Union and TAPCO Credit Union in Washington State before relocating to Idaho. Jeremy is passionate about innovation and strategy, and his work often involves partnering with industry leaders and FinTech companies, including partnerships with organizations like Upgrade, to enhance credit union offerings. His unique approach to lending emphasizes financial counseling, focusing on supporting both prime and non-prime borrowers. Jeremy holds a Bachelor’s Degree in Finance and a Master’s Degree in Management and Strategic Leadership.

Credit Unions. Members, Lending Trends, lending industry, financial industry trends, Fintech, Consumer Credit, Innovation, Underwriting, Financial Institutions, Consumer Lending, Auto Lending, Member Experience, Financial Solutions, market insights, credit risk modeling, Jeff Bogan, Upgrade