Alloya Corporate Federal Credit Union Prioritizes Simplicity to Streamline Loan Participations


Editor’s Note: Alloya Corporate Federal Credit Union provides cooperative financial services to 1,400 member credit unions and credit union entities nationally. Together, the member-owners of Alloya wield aggregated power to gain access to affordable, comprehensive products and services – including transactions, liquidity and investments – to give each credit union a strategic advantage in the marketplace.

Below, Alloya’s Vice President of Loan Participations & Lending, Bill Paton, shares the vision behind Alloya’s Loan Participation Platform, which launched in September.

What if 2020 had a silver lining? Without downplaying the tragedies of this year, I want to acknowledge one positive consequence. There is much that people disagree on, but we can all agree on this: Life moves too fast.

I am not just talking about the passage of time (yes, my daughter just turned five and I’m still wondering how we jumped from diapers to kindergarten); I’m addressing the unsustainably fast speed at which we swirl about the planet. Rushing from point A to point B — from the school drop-off line to the office. From meetings to emails to texts to missed calls, then back to another meeting (somewhere in there, we do actual work, I think). When COVID-19 arrived, it forced us to simultaneously slam on the brakes. Of course, credit unions are essential, so your service to your members never wavered. But the nation, as a collective, paused, and we were challenged to find joy in the simple things.

At Alloya, our mission has always been to simplify. Every decision we make, every product we launch, is challenged by the question: “What is in the best interest of the credit unions we serve and how can we simplify their operational lives?”

Long before COVID-19, we saw an opportunity in loan participations. They are an unmatched balance sheet management tool. Tight on liquidity? Sell some loans and keep on lending. Slow on loan growth? Purchase a pool and stimulate your portfolio. But the process of buying and selling loan pools was tedious.

From the inception of Alloya’s Loan Participation Program, we examined the process from all angles and seized every chance to ease the burden on credit unions. Then we started thinking bigger. If a credit union can purchase investments online, if tellers can process checks digitally, if consumers can order groceries by talking to their virtual assistant (Alexa, put Cheerios on the grocery list) — then why can’t credit unions easily buy and sell loan pools online, too? The short answer: there is no excuse.

Fast-forward to today, and that vision has come to life. In September, Alloya launched its Loan Participation Platform. A secure, fully automated online system for finding your match, diversifying your balance sheet, and participating painlessly. With a standardized agreement, deal negotiation is a breeze. Integrated, consolidated reports make monthly reporting easy for both buyers and sellers. Due diligence is a streamlined process that takes days, not weeks. And remittance funding is handled automatically through your credit union’s account at Alloya. As always, you’ll enjoy hands-on dedicated service from our team of loan participation experts. The matches are made easy; participations made painless.

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Posted in Business Solutions, GoWest Solutions.