Low-Income Credit Unions: Scam or No Scam

The NCUA lit this bonfire when in early May it tweaked the criteria for a credit union to win designation as a low-income credit union. That matters because an LICU gains significant flexibility in how it can do business, notably it can accept deposits from any source and gain exemption from aggregate loan limits on member business accounts.

Continue reading “Low-Income Credit Unions: Scam or No Scam”

CU 2.0 Podcast 92 Sahil Pankhaniya, A Start Up Credit Union at George Washington University

What will blow your mind as you listen to this podcast is how savvy and smart the guest is. That’s Sahil Pankhaniya, a 20 year old student at George Washington University in Washington DC who is pursuing the launch of a wholly new, student run credit union credit union at the Washington DC institution.

How cool is that.

The effort has been written up in Credit Union Times, and here Mr. Pankhaniya talks for himself.

Know this: he thinks very big. What if, he asks, if they can roll out credit unions at universities across the nation? What if indeed.  Not only would that get students familiar with credit unions it also would provide a stream of trained potential hires for credit unions.

The hope is to launch the credit union in the fall, a date that had been May but the coronavirus epidemic has pushed that back.

Pankhaniya and his fellow students also need to raise around $55,000 more to meet NCUA’s capital requirements.

It’s an exciting story.

Along the way, we discuss CUNA’s “Open Your Eyes” campaign – hear our podcast with Teresa Freeborn on this.

Know too that a recent podcast guest, Bill Kennedy, is a booster of this effort. Hear him on students and their need for mentors here.

And to learn more about start up Maine Harvest – now successfully chartered – listen here.

Listen Here

Want to listen to more of the Credit Union 2.0 podcast series? Click here to view the series.

CU 2.0 Podcast 91 Sherif Hassan Capiform on Smarter Lending Now

How could we build a lending tool that anybody could use?

That is the driving thought that led Sherif Hassan to form fintech Capiform and the timing could not be better.

That’s because, with the Covid-19 pandemic and the ensuing recession, suddenly credit unions are awash with savings deposits (as investors flee equity markets) and they also see a rush of loan applicants, for everything from Covid-19 triggered SBA loans through equipment leases.

How to efficiently handle the volume?

Know that right now deposits are arriving at much large volume than are loans at credit unions – despite the member needs.

Remember, too, mega banks, for the most part, have scant interest in “small” loans which to them often means under $250,000. But to a typical credit union that size loan is ideal and even smaller may be better.

But the mega banks shy away from those loans because they don’t see how to make money on them.

How could a credit union hope to? That’s where Capiform’s tools come in, where the borrower does much of the work and that’s augmented by computer tools (that verify income, check identity, etc). Much of the process is automated. According to Hassan, using his tools, a credit union could easily process 10X more loans, maybe 20X, daily without stressing staff who would engage only in higher level tasks such as verification and loan approval.

Adds Capiform, “Capiform’s Lending-as-a-Platform empowers you to scale your lending portfolio immediately, configure underwriting instantly and deploy new compliance & product guidelines.”

Sound good?

You bet and the timing is so right.

In this podcast you will hear about how the Capiform tools were developed, what they do and how, and the real benefits they could bring your credit union.

Listen up.

Want more info? Contact Capiform at its website.

In this podcast there’s mention of the David Chang podcast.  Listen here.  Note: Chang uses many four letter words. Not for delicate ears.

Listen Here

Want to listen to more of the Credit Union 2.0 podcast series? Click here to view the series.