Hull & East Yorkshire Credit Union delighted that a change in its approach to lending is paying off
01 Sep 17
Hull & East Yorkshire Credit Union (HEYCU) is delighted that a change in its approach to lending is paying off, with its total loan book this summer over 25% higher than a year ago.
John Smith, HEYCU’s Chief Executive, explains that a visit by their Georgia partner credit union earlier this year had directly led to some of the beneficial changes for the credit union. For the second year running, in July HEYCU launched a “Sizzling Summer Loan Sale”, featuring an amazing 3.5% APR rate on loans from £5,000 to £15,000, with repayment periods up to 7 years.
This campaign has generated a fantastic response, from new members as well as those who have been with HEYCU for some time, and led to an increase in loans across all categories, not just within the Sale parameters.
John says: “Following the visit by Sherry Saxon of Augusta Metro Credit Union, when growing our loan book was the main topic on our shared agenda, we put a plan together. However, the changes were very much driven by our staff team. Now we aim to have a conversation with our members at nearly every point of contact about whether they, or their family and friends, might find a credit union loan helpful.
“We do simple things like asking if the member has another loan and would like to Swap and Drop (swap a loan from another provider which is at a higher APR and drop to a Credit Union one with a lower APR). This has produced considerable growth at little cost and well within our risk appetite.”
Alan Hignett, HEYCU’s President, praised the staff team for meeting the challenge of introducing the new approach and, as a result, achieving the year-end business plan targeted growth in lending seven weeks early: “This is a real team effort, and one in which we have continued to demonstrate the Credit Union difference to our members”.