October 27, 2023
In a world of constant financial evolution, it’s crucial for financial institutions to adapt and thrive in changing environments. Alliant Credit Union, under the leadership of Charles Krawitz, the Chief Capital Markets Officer and Head of Commercial Lending, has successfully navigated this landscape. In this blog post, we’ll delve into the insights shared by Charles Krawitz during a recent episode of 22 Minutes in Lending, exploring the key takeaways and how Alliant Credit Union’s approach has made a difference in the world of lending with its financial adaptation and innovation.
Alliant Credit Union: A Digital-First Approach
Alliant Credit Union stands as an exemplar of how traditional credit unions can evolve into digital-first institutions. Unlike many credit unions, Alliant has a national lending platform and a broader field of membership. The institution has embraced technology, serving over 800,000 members without relying on physical branches. This approach not only cuts costs but also allows Alliant to offer competitive rates on loans and savings accounts.
Diversified Depository Base
Alliant’s success can be attributed to their focus on serving our members’ best interests. They offer competitive rates on savings accounts, and importantly, they’ve eliminated overdraft fees, a significant benefit to their members. Additionally, Alliant has built corporate relationships to expand its reach, offering a suite of financial products as a financial wellness benefit to employees. Partnering with large corporations in service to their employees has helped expand Alliant’s ability to positively impact the financial lives of hard working men and women across the country.
Performance Concerns and Opportunities
Loan performance concerns are a prevalent topic in the financial sector, and Charles’ recommendation is clear: don’t let fear or headlines govern your lending decisions. With interest rates currently at elevated levels, financial institutions should cautiously but actively seek lending opportunities at attractive risk adjusted returns. Such returns can be utilized to provide member benefits like higher savings rates.
The Future of Commercial Real Estate
The podcast conversation takes a deep dive into the current state of commercial real estate. This includes discussions on the effects of remote work and office conversions. While there is a paradigm shift in how office spaces are used, it’s essential to recognize that a complete transformation from office to residential is not a one-size-fits-all solution. Office conversions require a careful consideration of local context, government support, and the dynamics of the area. While the future of commercial real estate remains uncertain, Charles suggests that a return to the office may be more significant than initially anticipated.
Closing Thoughts
In a financial landscape marked by constant change, Alliant Credit Union has emerged as a beacon of adaptation and innovation. The insights shared by Charles Krawitz during the podcast offer valuable lessons for the financial industry. The institution’s focus on serving members’ financial well-being while embracing technology and diversification is a model for success. These insights will continue to be relevant as financial institutions navigate the ever-evolving financial world.