Vantage West leverages short-term loan flexibility to withstand economic cycles

NAFCU and Upstart’s recent webinar “AI Lending Partnerships and the Power of Efficiency” featured some powerful advice from Vantage West’s Chief Lending Officer, Jeremy Pinard, in light of the recent failures of both Silicon Valley Bank (SVB) and Signature Bank: “Optimizing your portfolio to withstand the economic cycles that we go through and creating optionality is key.”

Alongside Upstart’s VP of Account Management, Ed Walters, the two discussed how personal loans can serve members’ needs for short-term cash flow support while delivering on some much-needed diversification as economic cycles change.

Delivering on members’ credit needs

Pinard explained that several factors caused the leadership team to seek out a fintech partner for consumer loans, including evolving member expectations and financing needs. Over the past 18 months, Pinard explained that members’ spending habits have shifted towards credit cards and personal loans for short-term cash flow support, especially as savings have dwindled post-COVID stimulus and inflation has risen. “We’re really seeing a shift from ample savings to leveraging credit to maintain a quality of life,” said Pinard.

In addition, the Vantage West team knew that they needed to improve their digital experience to meet members where they wanted to be met, both online and in the branch. As a $2.7B credit union heavily concentrated in Tucson, Arizona, the Upstart partnership would allow Vantage West to reach new members outside of its physical branch footprint.

 

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