What if 2020 had a silver lining? Without downplaying its tragedies, I want to acknowledge one of the most positive consequences of this year. There is much that people disagree on, but we can all agree on this: life moves too fast.
I am not just talking about the passage of time. (Yes, my daughter just turned five and I’m still wondering how we jumped from diapers to kindergarten. But that is beside the point.) I’m addressing the unsustainably fast clip at which we swirl about the planet. Rushing from point A to point B. From the school drop-off line to the office. From meetings to emails to texts to missed calls then back to another meeting (somewhere in there, we do actual work, I think). When COVID-19 arrived, it forced us to simultaneously slam on the brakes. Of course, credit unions are essential, so your service to your members never wavered. But the nation, as a collective, paused and we were challenged to find joy in simplicity. This has been 2020’s gift to us.
At Alloya, our mission has always been to simplify. Every decision we make, every product we launch, is challenged by the question: “What is in the best interest of the credit unions we serve and how can we simplify their operational lives?”
Long before COVID-19, we saw an opportunity in loan participations. They are an unmatched balance sheet management tool. Tight on liquidity? Sell some loans and keep on lending. Slow on loan growth? Purchase a pool and stimulate your portfolio. But the process of buying and selling loan pools was tedious.
From the inception of Alloya’s Loan Participation Program, we examined the process from all angles and seized every chance to ease the burden on credit unions. Then we started thinking bigger. If a credit union can purchase investments online; if tellers can process checks digitally; if consumers can order groceries by talking to their virtual assistant (Alexa, put Cheerios on the grocery list) – then why can’t credit unions easily buy and sell loan pools online, too? The short answer: there is no excuse.
Fast-forward to today, and that vision has come to life. In September, Alloya launched its Loan Participation Platform. A secure, fully automated online system for finding your match, diversifying your balance sheet and participating painlessly. With a standardized agreement, deal negotiation is a breeze. Integrated, consolidated reports make monthly reporting easy for both buyers and sellers. Due diligence is streamlined process that takes days, not weeks. And remittance funding is handled automatically through your credit union’s account at Alloya. As always, you’ll enjoy hands-on dedicated service from our team of loan participation experts.
Matches made easy. Participations made painless.
Visit www.alloyacorp.org/participateonline to learn more.
Alloya Corporate FCU’s purpose is simple: to support credit union success. With 1,400 credit unions banding together as members of Alloya, that power of cooperation creates enormous value. Members gain access to extensive financial services, technological capabilities, and skilled professionals. These aggregated resources greatly expand credit unions capabilities while containing costs. To learn more, visit www.alloyacorp.org.
By Bill Paton
Vice President, Loan Participations & Lending, Alloya Corporate FCU