POTTSTOWN, Penn.–Diamond CU developed a “lending roadmap” that it credits for 9% loan growth the first half of the year–without any rate promotion.
Its loan-to-share ratio moved to 95% and total yield for loans generated through June was 4.7%. CEO John Faust said the results stemmed from a careful focus on each loan category with marketing, clear goals and staff training.
“Fundamentally we recommitted to emphasizing lending here. We embarked upon a lending roadmap–an all-encompassing lending plan.”
That roadmap involves loan-segment-specific strategies, specific growth goals for each product and closely monitoring progress. Marketing stressed “Your One-Stop Lending Source,” and was supported by billboards, radio and Diamond’s website.
During the first half of 2012, Diamond’s 1st Lien Refi loan grew by $15.9 million, indirect was up $16.5 million, direct auto lending increased $1.6 million, MasterCard loans grew by $600,000, and MBLs were up $850,000. The $390-million
DCU made sure that first its products were competitively priced and then created individual loan strategies:
1st Lien Refi: The product was streamlined, making the app process simpler, not only providing greater convenience but allowing the CU to lower members’ costs for the loan.
Indirect Auto: Diamond CU zeroed in on dealerships that have been strong partners, adjusting pricing and compensation for its best dealer customers.
Direct Auto: Recapture was the driver–Diamond contacted members who recently took out a new car loan outside DCU.
MasterCard: With a program already in place that had been generating new cardholders, DCU promoted activtion and usage.
MBLs: With DCU new to this market, much of the effort was to establish brand recognition with its target market.
“We did it all without any real rate promotion. We just got recommitted to lending after a year in which we saw lending trending downward,” said SVO/CLO Lori Levengood. “Really, there was no silver bullet. It’s amazing what a great deal of focus and planning can do.”