Wednesday, August 14, 2024

SECU Explains Risk-Based Lending (RBL)... But Gets In A Loop!

  ... In A Loop?

How the Executive Leadership (ELT🔆) Team Explains RBL!

🔆 Until the Board introduced RBL, SECU "A-paper" borrowers were going elsewhere for their loans.   😎 Why?

🔆 Because our loan rates were way too high, we were not competitive. Everybody knew it!  😎 Why were you charging non-competitive loan rates?

🔆  We were trying to help members who never repay their loans.  😎 Why would you do that?

🔆  Beats me, I think it was CEO Mike Lord's fault.  😎 How did RBL fix all that?

🔆  The Board lowered loan rates for A-borrowers and raised them for all the other SECU members. 😎 Did charging a fair, competitive interest rate increase loans?

🔆 Oh yes, when you charge a fair, competitive loan rate, members immediately notice! Loans have really taken off since RBL!  😎 What would have happened if the Board had simply lowered the loan rate for every SECU member?

🔆 Why on earth would you do that? What's your point?  😎 Would loans "have really taken off" if the Board  had chosen to just charge that same, lower, fair rate to all SECU members?

🔆 Well of course they would have, but you don't understand - that's not RBL!  😎 Oh...

 

[😎 Bonus Question: What will the "A-paper" savers do if you're not paying fair, competitive interest rates on member deposits?  ðŸ”† That's not my problem, you'll have to ask the Board...]

  Fruit loop logic... unbelievable!