Three Lessons Packaged in Pink for Credit Unions

This article was originally published on CUInsights.

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The summer blockbuster, Barbie, has blown away box office sales playfully bringing to life the disparity and dynamics between genders, consumerism, and the pursuit of dreams. The film uses humor to break down the narratives of the past and reset meanings of self-worth and community.

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So what does Barbie have to do with credit unions? We found three key takeaways your credit union can leverage to enrich the lives of members and the communities you serve.

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#1. Know your worth (and your home’s worth)

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As Barbie rediscovers her life’s meaning and self-worth, she ends up back home to reclaim her hard-earned pink palace. But the age-old questions remain – how much had the property value changed while she was gone and did those “improvements” Ken made actually help or hurt the property value?

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While homeowner equity levels took a slight dip in Q2, they remain at an all-time high. All members who are homeowners should be aware of the tappable equity available and the pros and cons of leveraging it. With 62% of homeowners with a rate below 4%, the renovation market will remain hot as homeowners find themselves in love with their mortgage rate, but not their home.

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Credit unions can proactively provide awareness of financial solutions and anticipate member’s needs. By partnering with a fintech company to leverage bulk AVMs and automated technology, your credit union can compete with the non-bank lenders without the significant investment.

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#2. Pay attention to those single ladies buying homes and building wealth

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It’s not just in the movies that Barbie is ahead of Ken in homeownership. According to Census data, in 2022, single women owned 58% of the nearly 35.2 million homes owned by unmarried Americans, while single men owned 42%. And, this is consistent across the country with single women owning more homes in 48 out of 50 states.

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While the full impact of post-Covid shifts in the census date, age segments, and wage gaps are likely to shift ownership levels and gender disparity, there is a clear message that wealth building through homeownership is an important part of financial health.

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Fair lending is mission critical in homeownership and home equity lending. Partnering with fintechs enables credit unions to collect loan-level HMDA data to monitor lending data along the way. Leveraging market data brings awareness and inclusivity as credit unions build lending programs, policies, and outreach to be inclusive to all borrowers.

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#3. Complicated missions are best completed as a team

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Barbie may have left Barbieland with only Ken tagging along, but taking back the city required leadership, strategy, and a well executed team plan.

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Your team plays a critical role in delivering for members in an environment where speed and ease of digital experiences are now table stakes. While economic headwinds are increasing the challenges facing all lenders, now is the time to find operational efficiencies through process automation.

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Borrowers expect an easy digital experience, communication, and a fast closing. With non-bank lenders continuing to outspend credit unions, it’s time for credit unions to serve their members by doing what they do best – putting members first. Partnering with a fintech company is the fastest way to expand your team of experts to help complete the mission your members expect.

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To pay tribute to Allan (Ken’s best friend who feels left out), Coviance’s very own Allen Jingst, Chief Revenue Officer, can share how Coviance helps over 400 customers build stronger communities. Let’s chat about the ROI of lending technology when you book a demo today.