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NAFCU Annual Conference attendees Thursday learned the risks and rewards of indirect lending programs, successful member engagement techniques and how to earn valuable revenue by meeting members' needs through digital banking during educational sessions.

Indirect lending
R. Keith Stayer, senior vice president at Triad Financial Services Inc., led a session on indirect lending and how credit unions can choose and manage a program that best fits their institution. More specifically, Stayer talked about the benefits of indirect lending, including increased efficiencies, built-in protections, increased membership and cross selling, and portfolio diversification. He also addressed the risks of indirect lending: dealer management, consumer contract underwriting, consumer compliance and management oversight.

Member engagement
Beatriz Hartman, financial wellness and community engagement – KOFE at Consolidated Credit, talked about the different approaches credit unions can take to engage their membership using financial education.

Hartman noted that today's financial landscape isn't easy on many households. She said that "38 percent of full-time employed workers say they live paycheck to paycheck," adding that 57.4 percent of unbanked consumers say one of the reasons they don't have a bank account is because they "don't have enough money to keep an account open." However, she pointed out that NAFCU's data shows that 72.7 percent of credit unions offer free checking accounts.

Financial education, she said, is a great way for credit unions to engage new members. Hartman listed three basic approaches to financial education: on-site and virtual classroom learning, offline self-help education and one-on-one coaching.

However, she noted the best financial education platforms combine all three. "This combination provides your members with the best opportunity to build a solid foundation of financial literacy, ensuring they actively participate in the products and services you offer," she said.

Digital banking
Scott Weinert, product architect at Q2, discussed how many consumers – if given the option – would use their debit and credit cards to pay for key online and mobile features, and how credit unions can further adopt both digital and physical channels to better serve their members.

Through digital channels, Weinert pointed out that credit unions can better target rewards, and privacy, control and transparency. Through physical channels, he talked about new trends in metal cards and personalized debit and credit cards. But most importantly, he said credit unions need to know their members and cater to their needs.

NAFCU's 51st Annual Conference and Solutions Expo, which concludes today, is sponsored by NAFCU Services Corporation Preferred Partner Strategic Resource Management. For up-to-the-minute coverage, download the conference app, sponsored by CUNA Mutual Group, and follow #NAFCUAnnual on Twitter.