Americans use a lot of credit cards; the facts don’t lie. According to Federal Reserve data from 2014, 72% of consumers held at least one credit card. That’s a lot of people with a lot of plastic. That purchasing power has to originate from somewhere, and oftentimes that somewhere is your credit union. If you market your credit card services on a consistent basis, you have contributed to these stats. If not, let the data sink in. You might be missing out on some market share.
Consumer lending season is here, and now is the time to focus on automobile lending. Better weather draws consumers to dealerships and used car lots, looking for deals. Upgrades, trade-ins, and new vehicle purchases will be the order of the day. Consider a lesson from the past, in 2014.
A Quick Look Back at Consumer Lending
Lending soared with $101 billion in new auto loans being issued in the April-June quarter of 2014. In the second quarter, total outstanding auto loans rose to $905 billion. And while it is true federal mandates saw financial institutions underwriting loans for people with poor credit, this was a small piece of the pie. The main contributing growth factor was a solid economy, coupled with traditional, cyclical consumer habits. Three years later, 2017 could deliver a repeat performance.
The face of retail is changing, thanks to online shopping. Over the past few years, online retailers have captured a lot of market share. What may have looked like a failed venture or a trend at first, has significantly impacted retail environments. Just how large is the impact? Well, according to RBC Capital Markets Reports’ September Newsletter, Sears Holdings may lose as many as 50-60 stores next year. Many other retailers have made tough decisions to shut their doors as well.