CU 2.0 sponsor

Sparrow allows credit unions to gain the benefit of student loans without becoming a student lender.

Sparrow is a fintech company offering a white label marketplace that features 23 student loan providers, creating an opportunity for credit unions to expand their financial services. The company’s innovative, no-code platform enables credit unions to utilize Sparrow’s student loan marketplace without the need for complex integrations with their core or other technologies.

By partnering with Sparrow, credit unions can enjoy the advantages of offering student loans without having to become student lenders themselves. This not only simplifies the process but also provides several benefits that make the credit union more attractive to potential and existing members.

One notable advantage of working with Sparrow is the impressive opportunity for non-interest income. Sparrow pays credit unions for each loan funded or refinanced, and they pay roughly double what their closest competitor (Sallie Mae Smart Choice) pays. Additionally, they approved nearly 4.5x as many student loans as Sallie Mae’s Smart Choice product, dramatically increasing the credit union’s potential revenue from young student borrowers.

Sparrow’s platform also includes a unique memberization feature that converts any approved student loan applicant into a credit union member. This process helps credit unions expand their member base while providing valuable financial services to the new members.

Furthermore, credit unions that collaborate with Sparrow have the opportunity to better engage with younger generations, such as Gen Z and Gen Alpha. By offering student loans through Sparrow’s platform, credit unions can effectively capture the interest of these younger demographics, which are actively seeking financial products to support their educational goals.

Sparrow presents a fantastic option for credit unions that want to grow—especially among younger demographics. Because Sparrow eliminates the need for complex integrations, credit unions can deploy their own branded marketplace within minutes instead of weeks, months, or quarters. By partnering with Sparrow, credit unions can expect higher loan approval rates, more significant returns per funded loan, and memberization for approved applicants. Moreover, this collaboration positions credit unions to better capture the attention of Gen Z and Gen Alpha members, fostering growth and long-term relationships with younger demographics.