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Credit Union Expert Calls for Innovation that Will Help Solve Falling Yields


With interest rates at historical lows—and likely to remain that way for the foreseeable future—credit union experts are calling for the adoption of innovation to offset falling yields.

In this op-ed from Credit Union Times, author Scott Butterfield states the following:

“The past year gave us all a lot to think about. Navigating the pandemic was a career-defining event for many. For the most part, credit unions large and small were able to adapt quickly and make changes to meet the immediate needs of their members, improve remote access, care for their teams, and grow and generate a reasonable (albeit lower) ROAA. It’s also been a time of deep reflection for those who’ve been unable to quickly adapt as they’ve watched loan balances and yields fall while soaring deposits challenged net worth ratios.”

Giving credit unions another tool to offset falling yields is at the heart of Proforma Fund’s strategy.

“Yields are the number one concern for many credit unions,” said Kirk Bowman, CEO of Proforma Fund. “Partnering with Proforma Fund to capture more of the nonprime automotive loan market is one of the best ways for these institutions to shore up their bottom-line.”

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