Lending isn’t just about making the right offer at the right time. It’s also about making the offer to the right person.

Currently, the right consumers appear to be millennials, who report the highest need for loans among all demographic groups at 71%, up 30% from two years ago, and more than 50% from five years ago, according to the Raddon Research Insights study “If You Build It, They Will Borrow.”

Gen Xers and baby boomers reported more than double anticipation of their loan needs this year compared to 2018. Overall, 46% of consumers report needing a loan, according to Raddon.

These numbers reflect how demographics play a huge role in lending demand, driven by desire or need, Raddon reports.

As interest rates dropped, younger millennials began purchasing their first homes while older millennials either refinanced or moved to larger homes to accommodate growing families and home offices. 

Raddon recommends that lenders consider these questions to ensure they are making timely offers to the right loan candidates:

• Who is in the market?
• What do they want?
• Do they meet our criteria?
• Where are they applying?
• How fast can we get our offer out?

The next step is to monitor your member base to identify which qualified borrowers are taking advantage of today’s competitive rates.

In using your credit union’s specific credit criteria to qualify borrowers, you don’t have to sort through leads to find consumers with the need and the creditworthiness to match your offer.