August 20, 2025 • 36 mins
Access to credit can be life-changing, but for many members, the process still feels out of reach. Great Lakes Credit Union is working to change that with practical solutions that meet people where they are.In this episode, host Drew Megrey sits down with Steve Bugg, President and CEO of GLCU, to talk about how his team is rethinking lending through small-dollar loans, credit builder programs, and face-to-face financial coaching. Steve shares how they’re making a difference for underserved members while keeping risk low and impact high.
Join us as we discuss:
Join us as we discuss:
- How GLCU uses $300 loans to create long-term financial confidence
- Why second-chance lending isn’t as risky as most think
- Where mobile tools and in-branch service come together
- How community partnerships and DEI efforts support sustainable lending
- What it means to put trust at the center of the loan process
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Hey everyone, and welcome back to another episode of Leaders
in Lending. I'm your host Drew Beggery, joined today by
Steve Bug, the CEO at Great Lakes Credit Union, a
one and a half billion dollar asset size credit union
based just north of Chicago. Steve, welcome to the podcast
and thank you for joining me today.
Speaker 2 (00:19):
Hey Drew, thanks for having me on. Really appreciate it.
Glad to join you.
Speaker 1 (00:23):
Awesome. So let's just dive right in, Steve, As you
may already know, I always love to give the listeners
a bit of context on the how did you get
here type of stories? So can you tell us one
what first drew you to financial services and to know
what did that journey look like as you progressed into
your role today at Great Lakes.
Speaker 2 (00:41):
Sure? So, financial services for me started many years ago
in college where I worked for a regional bank, worked
for a finance company for a while as well, left
the industry for several years, got into tell communications, and
then was fortunate about eighteen years ago to be drawn
into a union. And at the time they were looking
(01:02):
for somebody with some distribution experience, some sales and marketing
that would compliment the executive team I'm like, this sounds
pretty cool, right, I'll do it for a couple of years.
Eighteen years later, I'm here, And what really drew me
to the credit union movement drew was the passion for
the interaction with the community, the people helping people, spirit,
(01:23):
and just really the capacity to give back and really
serve your members and the community in a different way
perhaps than a bank. And so that really drew me in.
I've always loved to be involved in the community and volunteer,
and then really once I got ingrained in the industry,
had a great CEO that gave me that ability to
(01:44):
learn the industry from an expert inside the industry. We
complimented each other's skills really well, and she gave me
that opportunity over time to learn the credit union movement,
the different functions of the credit union, to lead those areas.
And when I left that credit union was their EVP.
And it really pitched me really well at Great Lakes,
(02:08):
especially from the community involvement, which is what our board
was looking for at the time. So I joined Great
Lakes Credit Unions seven years ago president and CEO. Much
different institution now than we were. Of course, a lot
in the world has changed in those short seven years,
as we know. But I would say, Drew, one thing
that I have always really appreciated. I've had great leaders
(02:31):
that have given me that opportunity to excel, learn and develop.
But equally important to me was being able to utilize
coaches and mentors in my career, which I've really and
I still use today to bounce ideas off of. And
it just give me a different view through a different
lens than perhaps what I'm looking through and that has
(02:51):
served me well, not only here at Great Lakes, but
really throughout my entire career.
Speaker 1 (02:57):
Now, that's awesome, and that sounds like a very non
linear path to your to your current current role, but
I can echo that I that I have the same
settiment on the Credit Union mission of people helping people.
So that is a that's great. So the main theme
of our discussion I would define, as you know, like
building credit, building confidence. In some of our prior conversations Steve,
(03:21):
leading up to this, you shared how Great Lakes has
you know, helped members with thinner credit files start building
credit and rebuilding their you know, their financial confidence. I'd
love to hear about how you went about doing that
and how has it served as a real alternative to
to pay day lending.
Speaker 2 (03:38):
Yes, great question, Drew. Thanks. So if we look back
at GLCU, we're a low income designated credit union, a
community development credit union, so we really serve those of
modest means. Uh So, over fifty one percent of our
membership is low income. We serve a very diverse population
just because of where we sit in the Chicago suburbs,
(04:00):
branches in the city and in suburbia. So when we
look at serving those members, especially those that are more
challenged from a credit perspective, we need to make sure
that we have products and services that are going to
benefit them and add that value. And one thing that
we realized is we just can't have a standard suite
(04:21):
of lending products that we say really fit all demographics
because as you and I know, they don't. So we've
been very diligent in our efforts to have products and
services that are going to help our members improve their lifestyle. Right.
Some of it is changing their behavior, some is just
(04:41):
giving them an opportunity to get back into what we
would consider more traditional banking. So a couple examples that
we've utilized at Great Links Credit Union. One is our
credit builder loan. We're very proud of this loan. It's
simply one thousand dollars. We don't charge an applic pation fee,
there's zero percent, and it's set up on a repayment
(05:05):
plan and the idea is that we're reporting that back
to the credit bureau because they are making payments on it,
we hold that thousand dollars, so in essence, there's never
any delinquency right or a charge off, and it rebuilds
their file and it gives them that ability then to
use that in their credit file to look at other
opportunities for lending in the future. And so I would
(05:30):
say it's been somewhat popular. We have about forty loans
on file right now, and those that have utilized it
have graduated then into other lending products such as getting
a credit card or getting a small personal loan. And
so when we look at the members that utilize that,
(05:52):
they've understood that they either have no credit file or
they need that second chance opportunity. Right. We try to
tie in to the best of our ability financial literacy
and education as well, because we do need to change
that behavior or that pattern that they've fallen into. So
those that do take that seriously, will work with our
consulors on developing kind of what that needs to look like,
(06:16):
how important it is to make those payments timely, and
then to utilize that right as that next stepping stone,
and that has worked well for those members. We've had
that product for a couple of years now and so
slowly over time. Right, we want to make sure that
we're offering it to the right member that's going to
(06:37):
use it in the right way. I think for us,
something that we've offered for several years at Great Lakes
Credit Union. Another example is our payday lending alternative. We
call that fast Cash, and that is a loan that
is a twenty nine point nine nine percent with auto
pay thirty three point nine nine percent without auto pay.
(07:00):
There is a twenty dollars application fee and it's based
on that member's behavior with the credit union. So they
do have to be an existing member, but it gives
them that opportunity to prove to us over a period
of three months that they're a member in good standing,
and then they do have to be eighteen years or older.
They access that through our mobile app, so it becomes
(07:23):
available when they hit that criteria. So any member that
is eligible can go on the app, they'll see it appear,
they can basically apply, and so it's self service, right,
they go in, it's offered to them, it's underwritten, it's
funded without Credit Union employee interaction or intervention. And so
(07:48):
we have a little over one thousand loans on our
books for about seven hundred and three thousand. We only
have thirty eight loans that are past due, so that
delinquency is about three point eight percent, and we've only
charged off forty four of those loans for about forty
seven thousand. So in the big scheme of things, that's
(08:11):
not that large, right because they are smaller loans. But again,
a lot of our members will utilize that as a
way to bridge paychecks or gaps in income coming in,
and so they find that they need to utilize that
for emergency spending or in the current economic times that
(08:32):
we're dealing with, to put food on the table, help
pay rent, and so they look forward to paying that
down where they can apply again and use that in
those emergency situations. And we've also seen that members then
will utilize that right as part of their tool and
resource to really kind of manage their day to day budget. Again,
(08:58):
we want to provide financial liver see an education a
little bit harder on that because it is more of
an automated tool. But I will tell you the feedback
we get through from members is that they appreciate that
they can do it on their own and they don't
have to bring forward why it is that they need
to use that right. So some members are embarrassed because
(09:20):
they do need to bridge that gap. So through self service,
it's a great, great opportunity for those members to take
advantage of that. One. One new loan that we've just
started in a financial desert on the southwest side in
Austin through our Leader's Network branch is a member assistance
(09:42):
loan and it could be used for an existing member
or a new loan. We've just started it a couple
weeks ago and it's simply a loan for three hundred dollars.
It's at twenty nine point nine nine percent, so monthly
payments approximately sixty five dollars a month set up on
a five year term. After a couple of weeks we
(10:03):
have six loans eighteen hundred dollars. It is underwritten, but
it is really underwritten to give them an opportunity to
prove themselves before we would look at offering another type
of product or service. This came up due to our
relationship with the Leader's Network, which is a nonprofit national
group that we've worked with to bring that branch to
(10:25):
that financial desert and our branch staff. So we're testing
it in that community. We'll see how that goes over.
We're monitoring that on a weekly basis. If that works,
then we'll look out rolling that out in other areas
in the community. But again, I think for us, these
are just examples Drew of trying to provide some products
(10:48):
that are needed in those diverse communities that are economically
challenged and for those members that just need that second
chance or another opportunity.
Speaker 1 (10:57):
Yeah, they're getting that second chance. And then at the
end of the day, it's it's comfort. Right. So I
want to dig a little bit more into the credit
builder and the and the fast cash. You know, that's
of course building credit, building building confidence. What I want
to dig into though, is like you already kind of
outline that it can translate into secondary type of loan,
(11:19):
credit cards, so so on and so forth, or maybe
even some type of of deposit product that you uh
that you share internally, right, So can you walk us
through what the journey and or transformation for those members
is like going from that almost like uncertainty to empowerment
type of stage of life.
Speaker 2 (11:37):
Yes. So for those members that look at that product
as a way to help them build their relationship with
more of a traditional banking establishment, then they're using that
to kind of enter back into what we would consider
traditional banking. Right, so it's their first opportunity to either
(11:59):
re estate, bablish or establish credit and use that to
build kind of that journey. So, for example, on the
credit Builder loan, we've had some members because first they're
becoming members of the credit union, so they're opening that
share account and then we're attaching that loan on the
credit union side. So we are one of five credit
(12:20):
unions that offer a HUD certified consoling program. It's just
not for housing, it's for budgeting assistance, financial literacy. So
we've had members that have utilized that Credit Builder loan
and through utilizing that, they'll meet with one of our
consulors who will say, this is a great way for
you to establish credit. Let's get that credit file belt.
(12:44):
Then they'll work with our consolers post program to then
work on that next step. So for a couple of them,
it's been able to build up a savings routine of
then starting to save for a down payment for a
home or a down payment for an automobile, and then
(13:05):
we'll tie in a deposit account. So we also offer
a second chance checking. It's a certified bank on product
where you can't overdraft or nsf it, so they'll use that.
They can still use the debit card, put it in
their digital wallet, but again it gives them that ability
so they're saving. They've had a loan. Now we're getting
(13:27):
them into utilizing a transactional type account right letting them
use a debit card or a digital wallet, so that
then we can start building some of that spending history
along with the lending file. And then we've had those
members graduate into more mainstream lending products, applying for a
(13:49):
credit card, applying for a small personal loan. We've had
examples of where they've applied and gotten approof for an
auto loan. We've had a couple examples where they've said
over time to put money down on a home while
they're working with our consolors. Right, So if you think
about it, Drew, we're really trying to change their perception
(14:10):
of banking. We're also trying to improve their decision making
and change their behavior. Right, So, if they're working with
the concertor they're putting these programs in place, those are
some success stories. Certainly, we do have those that don't
(14:31):
complete paying the loan back, right, So then we're taking
that thousand dollars back and paying that down so it
does not negatively impact them, which is great. And so
I think those that are taking this seriously and know
it's a way to better their economic lifestyle, right, we
(14:51):
help them through that journey. That timeline can be as
great or as small as they want it to be.
And that's why our concertors work on that individualized plan
to really help them achieve what it is that's important
to them. Same thing with our fast Cash loan. Although
(15:12):
folks are using that as a payday alternative, they're also
being able to utilize that to bridge that gap. Most
of those members, since they're already GLCU members, utilize it
in addition to their checking account relationship, their savings relationships.
(15:33):
Some of them do have loans with us, but it
is helping them kind of bridge that gap in tough,
tough economic times, and we do see, especially in the
current environment, we're in more utilization of that loan just
because it's tough, right and things are very expensive.
Speaker 1 (15:53):
Now that's good. It's like you think about that whole structure.
It could be a set in and forget it. But
kudos to your team of there's more of a consultative
approach on the back end that gives them that holistic
view of what their financial freedom could look like if
if you follow that path. So in thinking forward, you
(16:13):
know the building of credit, the building of confidence it
should have, and I believe it does have an impact
on increased loan demand across these this cohort of numbers, right,
But in today's lending landscape, automation and reduced human interaction,
of course, are becoming the norm. I know I've talked
about it a lot on this podcast and in prior recordings,
(16:34):
but if I'm not mistaken, Great Legs has taken a
different approach by eliminating the traditional loan department right in
favor of I believe, a centralized lending type of model,
but still empowering the branch loan officers to lead those
personalized financial wellness types of conversations. So, Steve, can you
talk about what kind of inspired that shift, how it's
(16:56):
reshaped the lending experience for your members because the traditional
format right now is digital, digital, digital, and less people
wanting to come into a branch and talk to a
representative about their financial wellness.
Speaker 2 (17:10):
Sure, and I think for us it's important to understand
that because we're dealing with members of low to modest means, right,
certainly we have mid market and upscale memphers as well
to help us fuel and fund what we're doing. Right. However,
if you think about the members that we're engaged with
our members in the communities we serve where we have
(17:32):
brick and mortar, view that as kind of that financial
wellness center. So, yes, you got on a great point.
We need robust digital offerings, which we offer at Great Lakes.
You know, we utilized that example earlier with fash Cash
being on our mobile app. Right, we have online account opening,
online loan opportunities. But what we find through for a
(17:57):
lot of our members, especially our lower income members, they
may start digitally, but they want to have that interaction,
so we offer that a couple of ways. One certainly,
you can contact us through the member contact center. You
can use our AI assistant and chat with us right
and get a human, or you can come into a branch.
(18:20):
We have certified concerts, the FI set program in branch
and it is turning into more of a financial wellness center.
Transactions continue to go down, but what we're finding is
the interactions with our members in branch become more focused
on how are we here to serve you?
Speaker 1 (18:39):
Right?
Speaker 2 (18:39):
It's not just about a transaction anymore. So what we
realized is the challenge when we had all of our
lending folks sitting in a centralized department right, branches weren't
really engaged. We had a way that you could come
into a branch and then virtually be connected. Our members
told us they did not like that because if they're
(19:00):
coming into the branch, they're coming into it for a
specific reason. So when we started looking at, well, how
can we enhance that service model, it become apparent to
us that we needed to move those loan officers out
into the branch and then also upscale some branch staff
to be able to interact on the lending side with
(19:23):
the members right face to face, so we still use
a digital interaction tool to enter information and work with
that member. The member can even do that digitally in branch.
Most preferred to have us do that, and so yes,
there are times when automation will underwrite it. It'll kick
back the decision quickly, but if it needs to be reviewed,
(19:45):
we do have centralized underwriters, not a lot, but a
few that will look at those cases that require more
hands on. But the branch staff is able to interact
with the member, understand their need, get them in the
right product and service, explain the program to them, and
then fund it for them once that's approved as well.
(20:06):
So our model has been get rid of that centralized model, right,
and then put that back in for us back into
the branches. We still offer that through our contact center,
so you still can reach a person, but it's not
in a centralized area, right, It's going to be in
one of our branches. And quite honestly, if the members
(20:28):
calling in, they don't care if you're in a centralized
group or you're sitting in a branch. So from a
cost savings perspective, since we have branch staff anyway, because
they're there for the members during branch hours, why not
utilize them more effectively, so we've upskilled them. And that
also means, because we require a different skill set, we
pay them a little bit more than just a transactor, right,
(20:51):
So it serves the member, it serves us, and then
certainly right we overlay our digital platforms on top of that,
so we offer kind of the best of both worlds,
and that model has really worked well for us for
the last several years.
Speaker 1 (21:08):
That's great. I think with this ever changing idea of
more digital, less human interaction, as much as we say
we all love it in some facet, we're always trying
to obtain it right, Like you go on to a
specific website and talk to an AI agent, you just
want a quick answer, and it's not out putting it
(21:29):
quick enough. You immediately pick up the phone and she's like,
I need to talk to an agent. I need to
talk to a member service representative or something. So it's
a good kind of thought to keep in the back
of your mind. Like as we go forward with this
digital shift, like us as humans are going to want
to continue to engage with other humans.
Speaker 2 (21:47):
But yeah, and I think that's a great point right
to make. So digitalization is very important, But you're get
on a great point through it's that human interaction as well.
So you need a strong, great digital platform, but you
need that ability to your point, right, it's a great point.
You still need that human interaction, whether it's through the phone,
through a direct chat, or for us even being able
(22:10):
to offer it through one of our twenty two locations.
Speaker 1 (22:12):
So last question, and I kind of want to pivot
a bit from the member experience to the broader lending
landscape if you want to go there. But you know,
currently there's a lot of uncertainty now with of course
the administration change, the evolving regulatory signal, wavering, ongoing tariff discussions,
(22:33):
and the uncertainty there. So how are you approaching, you know,
your lending strategy in light of these unknowns and how
do you stay adaptable in the constantly shifting environment?
Speaker 2 (22:44):
Yeah? Tough right now, Right in the environment that we're
all in from a never perspective, but also from an
institution perspective. So certainly in the economic times we're in,
we do see applications increase, but we're also seeing denials increase,
right because of credit files. Right, So what we're trying
(23:06):
to do is to ensure that we're able to work
with our members the best of their ability. But part
of that may be suggesting alternatives versus just denying them outright,
to say, well, maybe did you look at purchasing an
auto that doesn't cost as much, right? Or can we
get a payment that better works for you? So offering
(23:27):
alternatives versus just flatly denying alone. But certainly we are
seeing denials. But I also think that because we have
that human interaction with those members that want that, at times,
we're then able to offer some constantly or coaching to them.
Maybe it's consolidation of debt. Maybe it's looking at if
(23:50):
they have a home, do they have a home equity loan?
Is that a better option for them if they're looking
at adding on some expense, right. So it's taking the
program that we have and educating the member in a
way to let them know that there are other options
for them. And I think that's one unique thing not
only about Great Lakes, but the credit union movement in
(24:11):
general is very good about offering those options and that
sometimes you know, digital can do that a little bit,
but that's where that human interaction plays in. I think,
you know, it's tough because we certainly have all seen
that delinquencies have increased in a lot of product lines right,
charge offs are increasing. Housing in some segments across the
(24:34):
country is starting to see some pressure on pricing. I
heard this week right some in California are experiencing back
what we did in eight nine and ten, where they're
giving deeds back, you know, in LUA foreclosures. So I
think it's paying attention to all of the economic constraints
(24:54):
that are impacting all of us, right and making sure
that you balance the need of being able to serve
of your member in the community, but doing it in
a smart way that certainly does not add additional or
unneeded risk to your balance sheet or your concentrations. And
so I think it's looking under the hood at what
(25:14):
you're offering, making sure you're pricing engines, are taking all
these nuances into consideration and evaluating them on a more
frequent basis to make sure that you're properly handling the
risk side of that equation. I think also putting people
in products and services that don't make sense for them
(25:36):
is a challenge, and that is a challenge when you
don't have that human interaction, are only utilizing kind of
a digital model. So it's making sure that the box
that you operate in if you're utilizing automated underwriting, right,
is taking into consideration those risk factors and making sure
that you continually update those and look at those because
(25:58):
the risk factors that we use to years ago are
not the same respectors that we need to use in
that model today, right. And then I think it's just
making sure that as we evolve products and services that
you're managing those and looking at those metrics on an
ongoing basis. Kind of goes back to my point on
that three hundred dollars loan, right, don't want to put
(26:19):
a lot of those on the books that are all
going to be charged off, even though they're small. So
it's monitoring that on a daily or weekly basis and
making sure the lending teams are really myopically focused on
managing those products and services. And then I also think,
you know, making sure that you're cognizant into LTVs, Right,
(26:42):
what does that look like? Does that really make sense
right when you're when you're giving out those loans. So
I think the awareness needs to be there, and it's
looking at all those economic factors. And then you know,
we're also seeing stress and pressure on some of those
markets in the last few years that have really had
housing values increased significantly starting to come back. So making
(27:07):
sure that if you're looking at a refinance of a
first or a helock, that you are taking those values
into consideration as well, and then really communicating and being
transparent with the membership when you're working with them on
a lending opportunity. Right. So, I think it just becomes
(27:27):
more of tuning into some of the key learnings we
picked up in the last economic downturn and then really
codifying those and saying, what did we learn, and let's
not get back into those same habits, and then how
do we get ahead of it versus so being more
proactive drough than being react.
Speaker 1 (27:48):
I'd love to get your thoughts to expand off of that.
You brought up a great point, and I would say
this is the consensus across the financial services ecosystem, whether
it's credit unions and or banks. Delinquencies are on the rise,
Denials of loans are on the rise. Most financial institutions
their form of income of course comes from lending. But
(28:11):
as we have pressures to valuations of homes, valuations of vehicles,
also constraining the approval the approval odds of these types
of products that you offer to your members. How do
you think about this in the short term from an
income perspective? Right, Like, if things are down and lendings
down and approvals are down, does this impact income statement?
How long? How are you kind of measuring your thought
(28:32):
process and moving forward with that? Right?
Speaker 2 (28:34):
So I think that goes back to concentrations, right and
modeling out through your ALM what your balance sheet can
really take, right. And so perhaps if you're lent out
and a lot of that is in mortgages, right, is
that a challenge? And then how do you offset that
with other type of loans right that are going to
(28:55):
help balance that concentration mix. But it is an income challenge, right,
So it's what other forms of non traditional income does
your credit union focus on? Right? And so how do
you maximize in a downward economic trend those other revenue
streams that can make up for whatever that gap is
(29:19):
going to be? Or you know, like us, we're a
shop that is very heavy and have been very heavy
on the mortgage side. We have a lot of those
fixed mortgages at low rates, right, because we got caught
in that bubble of not selling them quick enough, right,
So then we had to turn to other lending products
and services that was going to bring in more income,
(29:40):
So commercial lending, small business lending that brings in some
fee income. But also today you're putting those on at
a higher rate. Need to do it the smart way, right,
But I think it's balancing out. What are some of
those other products and services that you can bring in
fee income in in the right way? And are you know,
onboarding those loans at a higher rate than you have
(30:01):
on your books today, and as things pay down, replace
those loans with loans at a higher rate. But part
of it is a timing as well, right, And so
then what other sources of income are you looking at? Right?
So can your investment portfolio bring in some additional income?
Speaker 1 (30:20):
Right?
Speaker 2 (30:20):
Do you have QSOs that can ratchet up income? Right?
So I think it's looking at all those alternative sources
if you have those available at your credit union. But
I will say, you know what I've seen sometimes during
economic downturns old enough to be here in a couple
of them, is you don't overreact either, right, because you
(30:42):
can go too much one way or the other right,
So what's that course of action that's going to keep
you in the middle, right, And then having that strategic
discussion with your board, with your leadership team to make
sure that you're taking all those things into consideration and
that you're really managing through more analysis and modeling on
(31:05):
decision making. Because you may think, well, all right, I
need to add on some more loans at a higher rate.
Well that's great, but are you doing it the right way?
Is their risk with bringing on those loans? Right? Certainly
we all love cecil and balancing out cecil implications as well,
but I think you need to do it in a
smart way, and I do think you need to look
(31:28):
at it with more emphasis placed on analysis and modeling,
and then make sure that whatever you decide to do,
that your balance sheet can support that, right, and that
you have the liquidity and the capital to be able
to build that into that balance sheet right analysis as well.
Speaker 1 (31:46):
Exactly. Well, thank you for that, Steve. I think this
is a good transition spot. I always like to close
the podcast out with three questions rapid fire, so we'll
get started here. What is the latest and great app
or technology gadget that you cannot live without.
Speaker 2 (32:03):
Yeah, So I'm an old technology person, So I would
say my iPhone because all my apps that I use
are on the iPhone right as they all off for
all of us, and so you know they're right there.
They're handy. But I would say, you know, top of
the list certainly would be our mobile app here at
the credit Union, right, because I can check on everything
(32:24):
all the time. I can see what my wife is doing, right,
what's coming in the account, what's going out of the account.
And then certainly because of Chicago, have to use Ways
a lot because the traffic is horrendous and there's always
something going on, so what's the best way to get there?
So Ways is probably my go to app as well.
And then fit Bit because I love to just see
(32:46):
sleep score, steps per day activity. Right. So I think
those would probably be the three top things on my
iPhone that I utilize.
Speaker 1 (32:56):
Yeah, I'm interested to see the transition of that. Like
you think about the iPhone, how long it's been out,
whether it's Ways or Google Maps or even the I mean,
the Bit's probably a decade in market now, Like those
are the ones that we can't live without. What does
that translate to in another decade or two decades now
from a technology perspective, but I would agree with you
that the technology that we cannot live without, I think
(33:17):
the phone number one takes takes the cake.
Speaker 2 (33:20):
All right?
Speaker 1 (33:20):
Next question, if you could switch jobs with anyone for
a day, who would it be?
Speaker 2 (33:24):
In y So probably a little bit unique to me.
For those that know me, that probably wouldn't be a surprise.
But I would say Clay Robbins, who is the CEO
of Lelly Endowment based on Indianapolis. Right, So, being a
Hoosier born and raised in the Hoosier State, had the
opportunity to work with them at a community foundation, their
(33:49):
very phone thropic. Their give back is tremendous, especially in
the state of Indiana, in community foundations and the impact
that that organization has made in the communities that they
serve in Indiana and the impact and seeing the impact
of those dollars being utilized. And so I go back
and say, that's really interesting because right if you take
(34:13):
that model and say, gosh, what could be done even
in other states, right by those type of pel and
profit organizations. Wouldn't we all be much better off? The
members we serve, the communities, we serve and because of
living our mission here at GLCU, that organization really resonates
(34:34):
with me, especially with having some interaction with them in
Indiana and at the credit Union I came from.
Speaker 1 (34:39):
That's good. We can take offline for another conversation our
collegiate fandom. But I did not know that you were
a former Hoosier and fan, so we'll pick that up
another day. Last question, though, does not need to pertain
to lending, but what is one bold prediction for the future?
Speaker 2 (34:56):
So I would say, so this is like pretty bold
going out there, nothing to do with lending, right, But
I really think the Chicago Cubs, I don't want to
jinx it right, are going to win the World Series
this year. Just wait and see it's gonna happen. It's
gonna happen.
Speaker 1 (35:12):
As a Cleveland Guardians now now Guardians fan, I don't
have the same mindset of rooting for anything Cubs related
since of what happened in twenty sixteen. But we can
also take that offline for another.
Speaker 2 (35:25):
And if I'm telling you that, I'm looking at my background, right,
and then you see the Bears in the back, right,
I did not say, right any prediction on them, but
maybe if I move over and hide there, right, So,
I just caught that on the background, Like, yah, that's
probably not so great. I should have had something up
there on the cups, right.
Speaker 1 (35:41):
Yeah, but Bears Brown's Noga guards cubs potentially. But Steve,
this has been such an insightful conversation. Thank you so
much for you know, sharing your experience, your perspectives. As always,
to our listeners, thank you for tuning in. If you
enjoyed today's episode, be sure to subscribe to share with
a colleague, friend, and the industry. Until next time, keep innovating,
(36:03):
stay curious, and thanks again for being part of our conversation.
Hey everyone, and welcome back to another episode of Leaders
in Lending. I'm your host Drew Beggery, joined today by
Steve Bug, the CEO at Great Lakes Credit Union, a
one and a half billion dollar asset size credit union
based just north of Chicago. Steve, welcome to the podcast
and thank you for joining me today.
Speaker 2 (00:19):
Hey Drew, thanks for having me on. Really appreciate it.
Glad to join you.
Speaker 1 (00:23):
Awesome. So let's just dive right in, Steve, As you
may already know, I always love to give the listeners
a bit of context on the how did you get
here type of stories? So can you tell us one
what first drew you to financial services and to know
what did that journey look like as you progressed into
your role today at Great Lakes.
Speaker 2 (00:41):
Sure? So, financial services for me started many years ago
in college where I worked for a regional bank, worked
for a finance company for a while as well, left
the industry for several years, got into tell communications, and
then was fortunate about eighteen years ago to be drawn
into a union. And at the time they were looking
(01:02):
for somebody with some distribution experience, some sales and marketing
that would compliment the executive team I'm like, this sounds
pretty cool, right, I'll do it for a couple of years.
Eighteen years later, I'm here, And what really drew me
to the credit union movement drew was the passion for
the interaction with the community, the people helping people, spirit,
(01:23):
and just really the capacity to give back and really
serve your members and the community in a different way
perhaps than a bank. And so that really drew me in.
I've always loved to be involved in the community and volunteer,
and then really once I got ingrained in the industry,
had a great CEO that gave me that ability to
(01:44):
learn the industry from an expert inside the industry. We
complimented each other's skills really well, and she gave me
that opportunity over time to learn the credit union movement,
the different functions of the credit union, to lead those areas.
And when I left that credit union was their EVP.
And it really pitched me really well at Great Lakes,
(02:08):
especially from the community involvement, which is what our board
was looking for at the time. So I joined Great
Lakes Credit Unions seven years ago president and CEO. Much
different institution now than we were. Of course, a lot
in the world has changed in those short seven years,
as we know. But I would say, Drew, one thing
that I have always really appreciated. I've had great leaders
(02:31):
that have given me that opportunity to excel, learn and develop.
But equally important to me was being able to utilize
coaches and mentors in my career, which I've really and
I still use today to bounce ideas off of. And
it just give me a different view through a different
lens than perhaps what I'm looking through and that has
(02:51):
served me well, not only here at Great Lakes, but
really throughout my entire career.
Speaker 1 (02:57):
Now, that's awesome, and that sounds like a very non
linear path to your to your current current role, but
I can echo that I that I have the same
settiment on the Credit Union mission of people helping people.
So that is a that's great. So the main theme
of our discussion I would define, as you know, like
building credit, building confidence. In some of our prior conversations Steve,
(03:21):
leading up to this, you shared how Great Lakes has
you know, helped members with thinner credit files start building
credit and rebuilding their you know, their financial confidence. I'd
love to hear about how you went about doing that
and how has it served as a real alternative to
to pay day lending.
Speaker 2 (03:38):
Yes, great question, Drew. Thanks. So if we look back
at GLCU, we're a low income designated credit union, a
community development credit union, so we really serve those of
modest means. Uh So, over fifty one percent of our
membership is low income. We serve a very diverse population
just because of where we sit in the Chicago suburbs,
(04:00):
branches in the city and in suburbia. So when we
look at serving those members, especially those that are more
challenged from a credit perspective, we need to make sure
that we have products and services that are going to
benefit them and add that value. And one thing that
we realized is we just can't have a standard suite
(04:21):
of lending products that we say really fit all demographics
because as you and I know, they don't. So we've
been very diligent in our efforts to have products and
services that are going to help our members improve their lifestyle. Right.
Some of it is changing their behavior, some is just
(04:41):
giving them an opportunity to get back into what we
would consider more traditional banking. So a couple examples that
we've utilized at Great Links Credit Union. One is our
credit builder loan. We're very proud of this loan. It's
simply one thousand dollars. We don't charge an applic pation fee,
there's zero percent, and it's set up on a repayment
(05:05):
plan and the idea is that we're reporting that back
to the credit bureau because they are making payments on it,
we hold that thousand dollars, so in essence, there's never
any delinquency right or a charge off, and it rebuilds
their file and it gives them that ability then to
use that in their credit file to look at other
opportunities for lending in the future. And so I would
(05:30):
say it's been somewhat popular. We have about forty loans
on file right now, and those that have utilized it
have graduated then into other lending products such as getting
a credit card or getting a small personal loan. And
so when we look at the members that utilize that,
(05:52):
they've understood that they either have no credit file or
they need that second chance opportunity. Right. We try to
tie in to the best of our ability financial literacy
and education as well, because we do need to change
that behavior or that pattern that they've fallen into. So
those that do take that seriously, will work with our
consulors on developing kind of what that needs to look like,
(06:16):
how important it is to make those payments timely, and
then to utilize that right as that next stepping stone,
and that has worked well for those members. We've had
that product for a couple of years now and so
slowly over time. Right, we want to make sure that
we're offering it to the right member that's going to
(06:37):
use it in the right way. I think for us,
something that we've offered for several years at Great Lakes
Credit Union. Another example is our payday lending alternative. We
call that fast Cash, and that is a loan that
is a twenty nine point nine nine percent with auto
pay thirty three point nine nine percent without auto pay.
(07:00):
There is a twenty dollars application fee and it's based
on that member's behavior with the credit union. So they
do have to be an existing member, but it gives
them that opportunity to prove to us over a period
of three months that they're a member in good standing,
and then they do have to be eighteen years or older.
They access that through our mobile app, so it becomes
(07:23):
available when they hit that criteria. So any member that
is eligible can go on the app, they'll see it appear,
they can basically apply, and so it's self service, right,
they go in, it's offered to them, it's underwritten, it's
funded without Credit Union employee interaction or intervention. And so
(07:48):
we have a little over one thousand loans on our
books for about seven hundred and three thousand. We only
have thirty eight loans that are past due, so that
delinquency is about three point eight percent, and we've only
charged off forty four of those loans for about forty
seven thousand. So in the big scheme of things, that's
(08:11):
not that large, right because they are smaller loans. But again,
a lot of our members will utilize that as a
way to bridge paychecks or gaps in income coming in,
and so they find that they need to utilize that
for emergency spending or in the current economic times that
(08:32):
we're dealing with, to put food on the table, help
pay rent, and so they look forward to paying that
down where they can apply again and use that in
those emergency situations. And we've also seen that members then
will utilize that right as part of their tool and
resource to really kind of manage their day to day budget. Again,
(08:58):
we want to provide financial liver see an education a
little bit harder on that because it is more of
an automated tool. But I will tell you the feedback
we get through from members is that they appreciate that
they can do it on their own and they don't
have to bring forward why it is that they need
to use that right. So some members are embarrassed because
(09:20):
they do need to bridge that gap. So through self service,
it's a great, great opportunity for those members to take
advantage of that. One. One new loan that we've just
started in a financial desert on the southwest side in
Austin through our Leader's Network branch is a member assistance
(09:42):
loan and it could be used for an existing member
or a new loan. We've just started it a couple
weeks ago and it's simply a loan for three hundred dollars.
It's at twenty nine point nine nine percent, so monthly
payments approximately sixty five dollars a month set up on
a five year term. After a couple of weeks we
(10:03):
have six loans eighteen hundred dollars. It is underwritten, but
it is really underwritten to give them an opportunity to
prove themselves before we would look at offering another type
of product or service. This came up due to our
relationship with the Leader's Network, which is a nonprofit national
group that we've worked with to bring that branch to
(10:25):
that financial desert and our branch staff. So we're testing
it in that community. We'll see how that goes over.
We're monitoring that on a weekly basis. If that works,
then we'll look out rolling that out in other areas
in the community. But again, I think for us, these
are just examples Drew of trying to provide some products
(10:48):
that are needed in those diverse communities that are economically
challenged and for those members that just need that second
chance or another opportunity.
Speaker 1 (10:57):
Yeah, they're getting that second chance. And then at the
end of the day, it's it's comfort. Right. So I
want to dig a little bit more into the credit
builder and the and the fast cash. You know, that's
of course building credit, building building confidence. What I want
to dig into though, is like you already kind of
outline that it can translate into secondary type of loan,
(11:19):
credit cards, so so on and so forth, or maybe
even some type of of deposit product that you uh
that you share internally, right, So can you walk us
through what the journey and or transformation for those members
is like going from that almost like uncertainty to empowerment
type of stage of life.
Speaker 2 (11:37):
Yes. So for those members that look at that product
as a way to help them build their relationship with
more of a traditional banking establishment, then they're using that
to kind of enter back into what we would consider
traditional banking. Right, so it's their first opportunity to either
(11:59):
re estate, bablish or establish credit and use that to
build kind of that journey. So, for example, on the
credit Builder loan, we've had some members because first they're
becoming members of the credit union, so they're opening that
share account and then we're attaching that loan on the
credit union side. So we are one of five credit
(12:20):
unions that offer a HUD certified consoling program. It's just
not for housing, it's for budgeting assistance, financial literacy. So
we've had members that have utilized that Credit Builder loan
and through utilizing that, they'll meet with one of our
consulors who will say, this is a great way for
you to establish credit. Let's get that credit file belt.
(12:44):
Then they'll work with our consolers post program to then
work on that next step. So for a couple of them,
it's been able to build up a savings routine of
then starting to save for a down payment for a
home or a down payment for an automobile, and then
(13:05):
we'll tie in a deposit account. So we also offer
a second chance checking. It's a certified bank on product
where you can't overdraft or nsf it, so they'll use that.
They can still use the debit card, put it in
their digital wallet, but again it gives them that ability
so they're saving. They've had a loan. Now we're getting
(13:27):
them into utilizing a transactional type account right letting them
use a debit card or a digital wallet, so that
then we can start building some of that spending history
along with the lending file. And then we've had those
members graduate into more mainstream lending products, applying for a
(13:49):
credit card, applying for a small personal loan. We've had
examples of where they've applied and gotten approof for an
auto loan. We've had a couple examples where they've said
over time to put money down on a home while
they're working with our consolors. Right, So if you think
about it, Drew, we're really trying to change their perception
(14:10):
of banking. We're also trying to improve their decision making
and change their behavior. Right, So, if they're working with
the concertor they're putting these programs in place, those are
some success stories. Certainly, we do have those that don't
(14:31):
complete paying the loan back, right, So then we're taking
that thousand dollars back and paying that down so it
does not negatively impact them, which is great. And so
I think those that are taking this seriously and know
it's a way to better their economic lifestyle, right, we
(14:51):
help them through that journey. That timeline can be as
great or as small as they want it to be.
And that's why our concertors work on that individualized plan
to really help them achieve what it is that's important
to them. Same thing with our fast Cash loan. Although
(15:12):
folks are using that as a payday alternative, they're also
being able to utilize that to bridge that gap. Most
of those members, since they're already GLCU members, utilize it
in addition to their checking account relationship, their savings relationships.
(15:33):
Some of them do have loans with us, but it
is helping them kind of bridge that gap in tough,
tough economic times, and we do see, especially in the
current environment, we're in more utilization of that loan just
because it's tough, right and things are very expensive.
Speaker 1 (15:53):
Now that's good. It's like you think about that whole structure.
It could be a set in and forget it. But
kudos to your team of there's more of a consultative
approach on the back end that gives them that holistic
view of what their financial freedom could look like if
if you follow that path. So in thinking forward, you
(16:13):
know the building of credit, the building of confidence it
should have, and I believe it does have an impact
on increased loan demand across these this cohort of numbers, right,
But in today's lending landscape, automation and reduced human interaction,
of course, are becoming the norm. I know I've talked
about it a lot on this podcast and in prior recordings,
(16:34):
but if I'm not mistaken, Great Legs has taken a
different approach by eliminating the traditional loan department right in
favor of I believe, a centralized lending type of model,
but still empowering the branch loan officers to lead those
personalized financial wellness types of conversations. So, Steve, can you
talk about what kind of inspired that shift, how it's
(16:56):
reshaped the lending experience for your members because the traditional
format right now is digital, digital, digital, and less people
wanting to come into a branch and talk to a
representative about their financial wellness.
Speaker 2 (17:10):
Sure, and I think for us it's important to understand
that because we're dealing with members of low to modest means, right,
certainly we have mid market and upscale memphers as well
to help us fuel and fund what we're doing. Right. However,
if you think about the members that we're engaged with
our members in the communities we serve where we have
(17:32):
brick and mortar, view that as kind of that financial
wellness center. So, yes, you got on a great point.
We need robust digital offerings, which we offer at Great Lakes.
You know, we utilized that example earlier with fash Cash
being on our mobile app. Right, we have online account opening,
online loan opportunities. But what we find through for a
(17:57):
lot of our members, especially our lower income members, they
may start digitally, but they want to have that interaction,
so we offer that a couple of ways. One certainly,
you can contact us through the member contact center. You
can use our AI assistant and chat with us right
and get a human, or you can come into a branch.
(18:20):
We have certified concerts, the FI set program in branch
and it is turning into more of a financial wellness center.
Transactions continue to go down, but what we're finding is
the interactions with our members in branch become more focused
on how are we here to serve you?
Speaker 1 (18:39):
Right?
Speaker 2 (18:39):
It's not just about a transaction anymore. So what we
realized is the challenge when we had all of our
lending folks sitting in a centralized department right, branches weren't
really engaged. We had a way that you could come
into a branch and then virtually be connected. Our members
told us they did not like that because if they're
(19:00):
coming into the branch, they're coming into it for a
specific reason. So when we started looking at, well, how
can we enhance that service model, it become apparent to
us that we needed to move those loan officers out
into the branch and then also upscale some branch staff
to be able to interact on the lending side with
(19:23):
the members right face to face, so we still use
a digital interaction tool to enter information and work with
that member. The member can even do that digitally in branch.
Most preferred to have us do that, and so yes,
there are times when automation will underwrite it. It'll kick
back the decision quickly, but if it needs to be reviewed,
(19:45):
we do have centralized underwriters, not a lot, but a
few that will look at those cases that require more
hands on. But the branch staff is able to interact
with the member, understand their need, get them in the
right product and service, explain the program to them, and
then fund it for them once that's approved as well.
(20:06):
So our model has been get rid of that centralized model, right,
and then put that back in for us back into
the branches. We still offer that through our contact center,
so you still can reach a person, but it's not
in a centralized area, right, It's going to be in
one of our branches. And quite honestly, if the members
(20:28):
calling in, they don't care if you're in a centralized
group or you're sitting in a branch. So from a
cost savings perspective, since we have branch staff anyway, because
they're there for the members during branch hours, why not
utilize them more effectively, so we've upskilled them. And that
also means, because we require a different skill set, we
pay them a little bit more than just a transactor, right,
(20:51):
So it serves the member, it serves us, and then
certainly right we overlay our digital platforms on top of that,
so we offer kind of the best of both worlds,
and that model has really worked well for us for
the last several years.
Speaker 1 (21:08):
That's great. I think with this ever changing idea of
more digital, less human interaction, as much as we say
we all love it in some facet, we're always trying
to obtain it right, Like you go on to a
specific website and talk to an AI agent, you just
want a quick answer, and it's not out putting it
(21:29):
quick enough. You immediately pick up the phone and she's like,
I need to talk to an agent. I need to
talk to a member service representative or something. So it's
a good kind of thought to keep in the back
of your mind. Like as we go forward with this
digital shift, like us as humans are going to want
to continue to engage with other humans.
Speaker 2 (21:47):
But yeah, and I think that's a great point right
to make. So digitalization is very important, But you're get
on a great point through it's that human interaction as well.
So you need a strong, great digital platform, but you
need that ability to your point, right, it's a great point.
You still need that human interaction, whether it's through the phone,
through a direct chat, or for us even being able
(22:10):
to offer it through one of our twenty two locations.
Speaker 1 (22:12):
So last question, and I kind of want to pivot
a bit from the member experience to the broader lending
landscape if you want to go there. But you know,
currently there's a lot of uncertainty now with of course
the administration change, the evolving regulatory signal, wavering, ongoing tariff discussions,
(22:33):
and the uncertainty there. So how are you approaching, you know,
your lending strategy in light of these unknowns and how
do you stay adaptable in the constantly shifting environment?
Speaker 2 (22:44):
Yeah? Tough right now, Right in the environment that we're
all in from a never perspective, but also from an
institution perspective. So certainly in the economic times we're in,
we do see applications increase, but we're also seeing denials increase,
right because of credit files. Right, So what we're trying
(23:06):
to do is to ensure that we're able to work
with our members the best of their ability. But part
of that may be suggesting alternatives versus just denying them outright,
to say, well, maybe did you look at purchasing an
auto that doesn't cost as much, right? Or can we
get a payment that better works for you? So offering
(23:27):
alternatives versus just flatly denying alone. But certainly we are
seeing denials. But I also think that because we have
that human interaction with those members that want that, at times,
we're then able to offer some constantly or coaching to them.
Maybe it's consolidation of debt. Maybe it's looking at if
(23:50):
they have a home, do they have a home equity loan?
Is that a better option for them if they're looking
at adding on some expense, right. So it's taking the
program that we have and educating the member in a
way to let them know that there are other options
for them. And I think that's one unique thing not
only about Great Lakes, but the credit union movement in
(24:11):
general is very good about offering those options and that
sometimes you know, digital can do that a little bit,
but that's where that human interaction plays in. I think,
you know, it's tough because we certainly have all seen
that delinquencies have increased in a lot of product lines right,
charge offs are increasing. Housing in some segments across the
(24:34):
country is starting to see some pressure on pricing. I
heard this week right some in California are experiencing back
what we did in eight nine and ten, where they're
giving deeds back, you know, in LUA foreclosures. So I
think it's paying attention to all of the economic constraints
(24:54):
that are impacting all of us, right and making sure
that you balance the need of being able to serve
of your member in the community, but doing it in
a smart way that certainly does not add additional or
unneeded risk to your balance sheet or your concentrations. And
so I think it's looking under the hood at what
(25:14):
you're offering, making sure you're pricing engines, are taking all
these nuances into consideration and evaluating them on a more
frequent basis to make sure that you're properly handling the
risk side of that equation. I think also putting people
in products and services that don't make sense for them
(25:36):
is a challenge, and that is a challenge when you
don't have that human interaction, are only utilizing kind of
a digital model. So it's making sure that the box
that you operate in if you're utilizing automated underwriting, right,
is taking into consideration those risk factors and making sure
that you continually update those and look at those because
(25:58):
the risk factors that we use to years ago are
not the same respectors that we need to use in
that model today, right. And then I think it's just
making sure that as we evolve products and services that
you're managing those and looking at those metrics on an
ongoing basis. Kind of goes back to my point on
that three hundred dollars loan, right, don't want to put
(26:19):
a lot of those on the books that are all
going to be charged off, even though they're small. So
it's monitoring that on a daily or weekly basis and
making sure the lending teams are really myopically focused on
managing those products and services. And then I also think,
you know, making sure that you're cognizant into LTVs, Right,
(26:42):
what does that look like? Does that really make sense
right when you're when you're giving out those loans. So
I think the awareness needs to be there, and it's
looking at all those economic factors. And then you know,
we're also seeing stress and pressure on some of those
markets in the last few years that have really had
housing values increased significantly starting to come back. So making
(27:07):
sure that if you're looking at a refinance of a
first or a helock, that you are taking those values
into consideration as well, and then really communicating and being
transparent with the membership when you're working with them on
a lending opportunity. Right. So, I think it just becomes
(27:27):
more of tuning into some of the key learnings we
picked up in the last economic downturn and then really
codifying those and saying, what did we learn, and let's
not get back into those same habits, and then how
do we get ahead of it versus so being more
proactive drough than being react.
Speaker 1 (27:48):
I'd love to get your thoughts to expand off of that.
You brought up a great point, and I would say
this is the consensus across the financial services ecosystem, whether
it's credit unions and or banks. Delinquencies are on the rise,
Denials of loans are on the rise. Most financial institutions
their form of income of course comes from lending. But
(28:11):
as we have pressures to valuations of homes, valuations of vehicles,
also constraining the approval the approval odds of these types
of products that you offer to your members. How do
you think about this in the short term from an
income perspective? Right, Like, if things are down and lendings
down and approvals are down, does this impact income statement?
How long? How are you kind of measuring your thought
(28:32):
process and moving forward with that? Right?
Speaker 2 (28:34):
So I think that goes back to concentrations, right and
modeling out through your ALM what your balance sheet can
really take, right. And so perhaps if you're lent out
and a lot of that is in mortgages, right, is
that a challenge? And then how do you offset that
with other type of loans right that are going to
(28:55):
help balance that concentration mix. But it is an income challenge, right,
So it's what other forms of non traditional income does
your credit union focus on? Right? And so how do
you maximize in a downward economic trend those other revenue
streams that can make up for whatever that gap is
(29:19):
going to be? Or you know, like us, we're a
shop that is very heavy and have been very heavy
on the mortgage side. We have a lot of those
fixed mortgages at low rates, right, because we got caught
in that bubble of not selling them quick enough, right,
So then we had to turn to other lending products
and services that was going to bring in more income,
(29:40):
So commercial lending, small business lending that brings in some
fee income. But also today you're putting those on at
a higher rate. Need to do it the smart way, right,
But I think it's balancing out. What are some of
those other products and services that you can bring in
fee income in in the right way? And are you know,
onboarding those loans at a higher rate than you have
(30:01):
on your books today, and as things pay down, replace
those loans with loans at a higher rate. But part
of it is a timing as well, right, And so
then what other sources of income are you looking at? Right?
So can your investment portfolio bring in some additional income?
Speaker 1 (30:20):
Right?
Speaker 2 (30:20):
Do you have QSOs that can ratchet up income? Right?
So I think it's looking at all those alternative sources
if you have those available at your credit union. But
I will say, you know what I've seen sometimes during
economic downturns old enough to be here in a couple
of them, is you don't overreact either, right, because you
(30:42):
can go too much one way or the other right,
So what's that course of action that's going to keep
you in the middle, right, And then having that strategic
discussion with your board, with your leadership team to make
sure that you're taking all those things into consideration and
that you're really managing through more analysis and modeling on
(31:05):
decision making. Because you may think, well, all right, I
need to add on some more loans at a higher rate.
Well that's great, but are you doing it the right way?
Is their risk with bringing on those loans? Right? Certainly
we all love cecil and balancing out cecil implications as well,
but I think you need to do it in a
smart way, and I do think you need to look
(31:28):
at it with more emphasis placed on analysis and modeling,
and then make sure that whatever you decide to do,
that your balance sheet can support that, right, and that
you have the liquidity and the capital to be able
to build that into that balance sheet right analysis as well.
Speaker 1 (31:46):
Exactly. Well, thank you for that, Steve. I think this
is a good transition spot. I always like to close
the podcast out with three questions rapid fire, so we'll
get started here. What is the latest and great app
or technology gadget that you cannot live without.
Speaker 2 (32:03):
Yeah, So I'm an old technology person, So I would
say my iPhone because all my apps that I use
are on the iPhone right as they all off for
all of us, and so you know they're right there.
They're handy. But I would say, you know, top of
the list certainly would be our mobile app here at
the credit Union, right, because I can check on everything
(32:24):
all the time. I can see what my wife is doing, right,
what's coming in the account, what's going out of the account.
And then certainly because of Chicago, have to use Ways
a lot because the traffic is horrendous and there's always
something going on, so what's the best way to get there?
So Ways is probably my go to app as well.
And then fit Bit because I love to just see
(32:46):
sleep score, steps per day activity. Right. So I think
those would probably be the three top things on my
iPhone that I utilize.
Speaker 1 (32:56):
Yeah, I'm interested to see the transition of that. Like
you think about the iPhone, how long it's been out,
whether it's Ways or Google Maps or even the I mean,
the Bit's probably a decade in market now, Like those
are the ones that we can't live without. What does
that translate to in another decade or two decades now
from a technology perspective, but I would agree with you
that the technology that we cannot live without, I think
(33:17):
the phone number one takes takes the cake.
Speaker 2 (33:20):
All right?
Speaker 1 (33:20):
Next question, if you could switch jobs with anyone for
a day, who would it be?
Speaker 2 (33:24):
In y So probably a little bit unique to me.
For those that know me, that probably wouldn't be a surprise.
But I would say Clay Robbins, who is the CEO
of Lelly Endowment based on Indianapolis. Right, So, being a
Hoosier born and raised in the Hoosier State, had the
opportunity to work with them at a community foundation, their
(33:49):
very phone thropic. Their give back is tremendous, especially in
the state of Indiana, in community foundations and the impact
that that organization has made in the communities that they
serve in Indiana and the impact and seeing the impact
of those dollars being utilized. And so I go back
and say, that's really interesting because right if you take
(34:13):
that model and say, gosh, what could be done even
in other states, right by those type of pel and
profit organizations. Wouldn't we all be much better off? The
members we serve, the communities, we serve and because of
living our mission here at GLCU, that organization really resonates
(34:34):
with me, especially with having some interaction with them in
Indiana and at the credit Union I came from.
Speaker 1 (34:39):
That's good. We can take offline for another conversation our
collegiate fandom. But I did not know that you were
a former Hoosier and fan, so we'll pick that up
another day. Last question, though, does not need to pertain
to lending, but what is one bold prediction for the future?
Speaker 2 (34:56):
So I would say, so this is like pretty bold
going out there, nothing to do with lending, right, But
I really think the Chicago Cubs, I don't want to
jinx it right, are going to win the World Series
this year. Just wait and see it's gonna happen. It's
gonna happen.
Speaker 1 (35:12):
As a Cleveland Guardians now now Guardians fan, I don't
have the same mindset of rooting for anything Cubs related
since of what happened in twenty sixteen. But we can
also take that offline for another.
Speaker 2 (35:25):
And if I'm telling you that, I'm looking at my background, right,
and then you see the Bears in the back, right,
I did not say, right any prediction on them, but
maybe if I move over and hide there, right, So,
I just caught that on the background, Like, yah, that's
probably not so great. I should have had something up
there on the cups, right.
Speaker 1 (35:41):
Yeah, but Bears Brown's Noga guards cubs potentially. But Steve,
this has been such an insightful conversation. Thank you so
much for you know, sharing your experience, your perspectives. As always,
to our listeners, thank you for tuning in. If you
enjoyed today's episode, be sure to subscribe to share with
a colleague, friend, and the industry. Until next time, keep innovating,
(36:03):
stay curious, and thanks again for being part of our conversation.
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