Jonathan Patrick

Jonathan is a Strategic Initiatives Analyst with Jack Henry & Associates, Inc.® where he covers the credit union and fintech industries. Prior to joining Jack Henry & Associates, Jonathan was Senior Vice President/Chief Lending Officer at UT Federal Credit Union in Knoxville, TN where he and the credit union won multiple awards for innovation. Earlier in his career, he was a commercial lender with a regional bank where he was party to over $500M in commercial loans. Jonathan has a startup background as an advisor, founder and investor.

Recent Posts

3 Ways Credit Unions Can Make Their MBL Troubles All but Disappear

Posted by Jonathan Patrick

Dec 7, 2016 11:30:00 AM

Some credit unions didn’t get the news they wanted regarding recent changes by the National Credit Union Association (NCUA) to the Member Business Lending (MBL) regulations. The announcement included the removal of the requirement for personal guarantees from business loan borrowers. What the announcement didn’t include, to the chagrin of some credit unions, was the removal of the so-called “MBL cap.” If you aren’t familiar with this part of the regulation, Section 723.16(a) states “The aggregate limit on a credit union's net member business loan balances is the lesser of 1.75 times the credit union's net worth or 12.25% of the credit union's total assets.”

The MBL cap has long been a regulatory sore spot with some credit unions and some government officials. As far back as 2010, there were U.S. Congressmen sponsoring legislation to increase the MBL cap. Even as recent as May 2016, there were Congressional leaders expressing their desire to see the cap increased to encourage credit unions to expand lending to small business owners. (1) But the reality is that raising the cap would only positively impact a small number of credit unions. Credit Union Journal pointed out that of the 5,954 federally insured credit unions, only 106 credit unions were relatively close to the cap. (2)

Why then is the MBL cap such a “hot button” for some credit unions, especially when there are several ways, other than new legislation, to work around the cap?


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Topics: Regulatory Compliance, Credit Unions

Rewards Apart

Posted by Jonathan Patrick

Jul 27, 2016 10:00:00 AM

Service Isn’t the Panacea, Value Matters as Well

Ask just about any financial institution how they are different and you will inevitably be told it is through “WOW service.” Service is the most commonly quoted differentiator, because many banks and credit unions believe there is little room left to differentiate through products and services. While the people factor certainly plays a huge role, standing apart from the pack these days means creating real value.

It is important to understand the credit union philosophy in order to grasp why they are driven to provide real value to their members. The difference can be seen in how they define people that do business with them and as a “member”, you essentially own the credit union.

Traditionally the value offered for being an owner has come in the form of better-than-market interest rates. However, lately credit unions have been looking to extend that value by increasing the types of rewards programs they offer.

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Topics: Customer Experience

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