Category Archives: Consumer Lending

Phase of acceleration to go through 2015 in UK Bank lending

According to the information showed in Ernst & Young Item Club, the mortgage lending in UK to households and companies will start on the track of increase this year and this will keep moving upward in the same manner through 2015.
As per a viewpoint, lending industry to meet with a rise 1.8 per cent in 2013 which then will be followed by 3.8 per cent in 2014 and 5 per cent in 2015, this has shrunk very much against the estimation of 7 per cent in year 2012. This year will meet with the modest growth in Corporate and mortgage lending, and on other side the consumer lending will see a little modification and it will start moving upward again in 2014.

Carl Astorri one of the senior economic advisers to the firm’s Outlook on fiscal services said, the figure of 1.8 per cent growth in lending may seem modest, but if a look is taken on the figures after 2010 then it will come out that this will be one of the best & fastest growths in bank lending since the year 2010. This notes that now the end of the disastrous has started for UK lending. As it is being expected that the lending is going to see increase in 2014 and 2015 then the money should begin to dribble all the way through cash starved Small and Medium-sized enterprises.

According to the statement came from the end of Ernst & Young Club Outlook, the lending to the non-bank private sector would get bigger by 3.8 per cent in 2014, touching the highest level of 1.65 trillion pounds and the growth would close at 5 per cent in 2015. It also revealed that the deposits at UK lenders fell down 7.2 per cent in 2012 as it was estimated which was the result of non-resident foreign currency connected to the repatriation of capitals by banks in the euro region.

Ernst & Young Item Club said that during 2013, this negative influence should reach to its modest part with the stabilization of condition in Euro-zone with which the UK banks mark rise in total deposits.

The corporate peaked up at an estimated 10.9 billion pounds which was the result of help made by a economic recovery in UK Still, but this year it would drop down to 1.2 per cent of the total loans. The statement of Ernst & Young Club said that the capability of profit would not be able to throw away the pressure due to the impact of low interest rates on margins and also because of the higher regulatory and compliance costs.

Tom Hoffman is expert in finance and writes on financial terms like 12 month loans, for more visit the link http://www.emonthloans.co.uk/

Mobile Banking: Good for Credit Union Members and Lending Growth

Credit unions are constantly looking for products that are both good for their members and good for lending growth. Finding something that fits both specifications can be challenging; yet with a little digging, you can strike gold. Mobile banking happens to be one of the areas where more than a few good nuggets exist. Let’s unpack it a bit further and explore the benefits that are beneficial to both aspects mentioned above.

First, a little bit of backstory. In the eighth annual billing household survey conducted by Fiserv, an interesting statistic emerged. Their findings show that there was a huge increase in households that use more than one method of payment to pay their bills. That number is now 90%. While that may not speak to mobile banking as much, it does speak to consumers. It is loud and clear that they want options. In fact, they demand them now. This is where mobile banking is crucial for members. When looking for fillable forms for mobile banking, remember that Oak Tree provides your credit union compliant forms for membership documents, consumer lending, home equity lending and business lending.

Mobile Banking Gives Members a Choice

Offering mobile banking to credit union members gives them the power of choice in the form of continuous access. They can access their financial information at any time. They can also choose to receive paper statements, but the convenience of checking their accounts online is satisfying. It is keeping them in the know and up to date regarding recent transactions. Having 24/7 access has become an expectation. It is part of living in a fast-paced digital world. Mobile banking is indispensable in this regard and so is Oak Tree for your credit union lending documents.

Mobile Banking Gives Members Flexibility

This aspect is a great selling point for credit union members. Most mobile banking systems are comprehensive, allowing members to perform functions such as:

-Online account management
-Money transfers
-Online bill pay
-Credit score assessment
-Electronic statements
-Budgeting tools
-Retirement planning
-eDeposits
-Card services
-Car Buying services
-ATM/Branch location information
-Travel notifications for card usage

Having access to all of these features gives credit union members the flexibility they need to control their financial lives. It also keeps everything in one place. Rather than logging into several different online accounts, members simply log into one place and have access to all of the financial tools they need. That’s the ultimate goal in financial flexibility

How Mobile Banking Encourages Lending Growth

So, how does mobile banking play into lending growth as it relates to credit unions? The answer is straightforward, yet indirect.

When pitching mobile banking services to credit union members, mention the fact that they can check loan balances in addition to regular checking and savings account balances. The accessibility of having this information at hand will keep them up to date and informed. They will know when their next payment is due, how much they have left to pay on the principal balance, and how early payments will affect the amount of interest owed.

Rather than receive another bill in the mail, they can simply log on and check the balance just as they would normally. They have one user name and password to get access to all of their account balances, all of the financial planning tools, and any other freebies such as budget or credit score assessments offered by your credit union. This is why it’s always a good idea to mention the convenience of mobile banking when pitching an auto or home loan to a member. Oak Tree can set up forms to include digital signatures and optical storage with most systems.

Finally, having a great online banking system could encourage more members to make the switch from their current financial institution to your credit union. More members translates into more people to pitch your lending products to. It is, ultimately, how mobile banking works together for the financial stability of credit union members, while encouraging lending growth for the credit union itself. With 90% of households demanding different choices now more than ever, it might be a good time to look at your mobile banking system and see if it offers everything your members are looking for. If not, it might be worth making the investment to offer more choices with your mobile banking experience. It could drive more members to you, which could easily translate into more lending growth for your credit union.

So, should your members need mobile banking, you can rest assured our Oak Tree documents and lending packages are the perfect complement to the process. All of our forms are up to date, and compliant with all state and federal regulations. They are easy to customize and can be tailor-made to reflect your brand. In addition, Oak Tree forms integrate with any data processor. This allows for convenience and flexibility, so you can remain accessible to your members, and help them achieve their financial dreams. Email us at clientservices@oaktreebiz.com or chat with us at www.OakTreeBiz.com.

Credit Union Forms: Secured and Unsecured Lending

Credit unions serve different demographics throughout the united states of america and need to deliver proper loan products to most useful match their particular people’ requirements. Requirements like age, income, and credit history all aspect into which kind of loan emerges to an associate. These variations helps that loan officer choose whether or not to offer an associate a secured or unsecured loan.
The distinction between a secured and unsecured loan:

A guaranteed loan is collateralized by an item or form of security. Most often this security is a car or perhaps the equity of a house. If a borrower defaults regarding regards to the mortgage, a creditor usually takes possession regarding the collateral through repossession associated with residential property and/or property foreclosure of security interest. Collateralized financial loans are usually regarded as carry less threat, and for that reason, lenders can offer lower rates of interest, while expanding the quantity of credit they may be able expand general as a result of a rise in the under-served or credit-challenged marketplace. Any loan that is not guaranteed would fall into the category of unsecured.

Oak Tree Business Systems, Inc. provides credit union kinds both for secured and short term loans. Both closed-end residence equity financial loans and open-end residence equity personal lines of credit (HELOCs) are guaranteed by the genuine property pledged as security in connection with that expansion of secured credit). Oak Tree’s open-end consumer financing forms can be built to guide both secured and unsecured financing. For guaranteed lending, the types will consist of many terms expected to properly offer the different aspects of open-end, collateralized consumer financial loans (including modified improvements, safety, various other protection, and standard terms) and other customizations as may be needed so that you can help a particular kind of collateralized financing.

To learn more about the different guaranteed and unsecured loan kinds from Oak Tree, speak to united states on our web site or mail clientservices@oaktreebiz.com.

Don’t Forget About Share Secured Lending!

It is no secret that providing growth drives the credit union business. Knowing that, it is essential to zoom away and appearance within larger lending image occasionally. When you do, you will discover that some kinds of financing are not marketed as regularly as other people. As a result, your members could be missing lending options. Why don’t we just take a closer look at one kind very often gets overlooked. Your credit union should concentrate on share guaranteed financing for 2 significant reasons.

Two Associate Pros for Share Secured Lending

1. Share secured financing assists people. That’s right, this is a great way to assist users just who is almost certainly not in a position to be eligible for old-fashioned types of financing. It really is a fantastic solution to give them a new start. Your credit union is able to secure the loan because of the users’ cost savings accounts. It really is a surety of repayment for your credit union. Yet, the member sees the loan as an encouraging step of great trust. Share guaranteed financing promotes trust and commitment between the credit union plus the user.

2. It really is a good stepping-stone. Frequently, once an associate takes care of their particular share guaranteed loan, they be eligible for unsecured loan products. These will be the same kinds of financial products they just paid down, only this time they are able to get a better rate or better terms because of their improved credit rating. This really is an excellent self-confidence boost for users. A boost that would most likely not occur without offering a share secured loan.

Offer Share Secured Lending

Share secured lending are often offered in installment loans or credit lines, which are perfect for those people that possibly struggling to obtain unsecured credit. After a share secured loan is paid off effectively, the next phase can often be to try to get those exact same services and products your credit union provide, but unsecured :-).

Of training course, this converts back again to even more financing development for the credit union. That development is good for other activities too, like member retention and brand-new membership. Loyal users who previously held share secured personal loans will love distributing the phrase, trumpeting to family and friends exactly how their credit union is the better spot to get a clear financial begin.

Our customer lending package will allow you to deliver those loans easily. Oak Tree features everything your credit union should provide your members an excellent lending experience. As constantly, all of our kinds are up-to-date along with condition and federal regulations. Aswell, our forms will quickly incorporate with your data processor. When you yourself haven’t taken a tough view share secured lending before, after the holidays is the perfect time and energy to do this. Chat with us for consumer lending or home equity lending plans at www.OakTreeBiz.com.

UK Consumer Lending and Mortgages Up

Consumer lending in Britain rose at the fastest pace in nearly five years and new mortgage approvals grew faster than expected as  the first signs of the economic recovery continue.
Bank of England data published Monday showed a massive £1.2bn surge in consumer credit, including bank overdrafts, the biggest monthly advance since February 2008. While at the same time, mortgage approvals for the month of September surged past 50,000 and new home loans grew by £491m.
The figures add more depth to a series of economic data which indicates that Britain has firmly exited its first double-dip recession since the early 1970s. In line with figures released earlier this month by the Office for National Statistics which said the economy  had grown at its fastest quarterly pace in five years, and, that employment  had rose to a record 29.59 million. They also highlighted Inflation easing to a three-and a half year low of 2.2%.
House prices around the country remain subdued, however, despite the new lending figures. Hometrack said today that UK prices had fallen for a fourth consecutive month in October – by 0.1 %  and warned that demand for new homes is “likely to slow in the run-up to the year-end with agents looking to push through as many sales as possible,” according to research director Richard Donnell.
While Credit growth which has been a major objective of both the government and the Bank of England, jointly launched a “Funding for Lending” scheme in August with the aim of generating £80bn in new company loan. To provide access to loans to households, families and many small companies. Which has been a major factor stalling growth over the past few years.

Written and presented by Ann Salter