Loan trading as a channel for new product development
Your purchase plan should outline the types and sizes of loans you are looking to purchase.
David Hoffer
As we embark on a new year, credit union executives are challenged to be innovative while also managing risk amid uncertain economic conditions.
The disruption of the coronavirus (COVID-19) pandemic has compelled credit unions to consider new business strategies. One less traditional path to new product development is loan trading.
Loan trading can help credit unions reduce risk in a challenging economy and boost their loan-to-share ratios. For new product incubation, loan trading is also an alternative to starting from the ground up.
By tapping into the experience of an established financial institution through loan purchases, investors can find a streamlined way to access new loan types that may be thriving in an otherwise slow loan growth environment.
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