NJCUL President/CEO David Frankil and CUNJ President/CEO Andy Jaeger Talk CU Growth Opportunities Through Small Business Lending in ROI-NJ Article

“In the face of costly compliance that financial institutions must deal with in a post-recession regulatory climate, as well as competition from large banking institutions,” local credit unions are looking to help small businesses that banks are shutting out, a recent article in the new ROI-NJ magazine points out. In the article, New Jersey Credit Union League President/CEO David Frankil and Credit Union of New Jersey President/CEO and NJCUL Chairman Andy Jaeger discuss untapped growth opportunities in serving the cannabis industry.

“All credit unions are looking for growth opportunities,” Frankil said. “Right now, it’s grow or die…And I think that most of our members — and I’d hazard to guess most credit unions anywhere — see this as a major opportunity for achieving that.”

Jaeger believes the credit union’s state-chartered status may grant it the ability to accept deposits from the prospective industry, giving it and other state-chartered institutions a sizable head start.

“These new cannabis businesses, they need a place to do their banking,” Jaeger said. “As a state-chartered credit union — the largest state-chartered credit union in New Jersey — we believe we have some flexibility that we’re exploring.”

At the root of this enthusiasm for helping an industry thrive is a larger financial sector trend: In the past few years, in particular, credit unions have been vying to compete with banks for all sorts of commercial loans, Frankil said.

“And I don’t think, honestly, that the business community have for a long time seen credit unions as a potential funding source,” he said. “So, I see this as one of the true untapped opportunities for credit unions in the state.”

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