6 Risk Management Tactics for Credit Unions in 2021
This article was originally published on CUInsight
While there is a lot to be optimistic about in 2021, it’s important credit unions take realistic precautions regarding risk and recovery management. There is much uncertainty regarding the true state of the economy as we continue to recover from the COVID-19 pandemic. Stimulus relief and deferral plans helped consumers manage finances, and credit unions enacted their business continuity plans in 2020. But in 2021, there’s growing uncertainty about the true state of delinquency as current recovery protocols and restrictions in place are masking some realities and data trends.
One example: 2020 repossession volume was lower than anticipated, which in turn increases rates for repo services due to lack of demand and could lead to future delays as deferral measures come to an end.
Additionally, the industry is facing a change of federal administration, a weakening used car index, rising auto retail prices, low auto supply matched with growing demand, high unemployment, and higher loan loss reserves.
Having strategic tools and services in place is imperative for credit unions preparing to best manage risk and continue to serve their members.
Read the full article here
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Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology-based products and services customized to meet the needs of over 4,000 banks and credit unions, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains over 10 regional offices and service centers around the country and is a subsidiary of Securian Financial Group, Inc.