1. Essential Lending Training
William Jason Goodwin-February 27, 2017

2. Essential Lending Training Agenda
Background
Purpose of Project
Problem Identified
Research Method and Procedures
Analysis and Findings
Recommended Action Plan

3. Background
Essential Lending Training

4. Background
Arkansas Federal Credit Union (AFCU) humbly began in the 1950’s as Little Rock Air Force Base Credit Union
Became Arkansas’s Largest Financial Cooperative
AFCU experienced extreme growth with new CEO, doubling within 5 years
Resulting centralization: processing and underwriting
Department Combination: Centralized Loan Processing + Centralized Loan Underwriting = Direct Consumer Lending
Frontline decentralization and turnover resulting in inconsistent service

5. Purpose of Project
Essential Lending Training

6. Purpose of Project Identify deficiencies in training and development
Many different approaches to training have failed
Focus on transfer of learning
Poor service goes against the credit union moto: People Helping People
With continued growth and turnover, consistency and compliance struggles will only compound

7. Problem Identified
Essential Lending Training

8. Problem Identified
Inconsistent service, specifically in the area of lending
Inadequate follow up
Poor communication
Making business difficult for members
Members look for the path of least resistance
AFCU must differentiate by providing an easy, memorable, and consistent experience

9. If left unresolved, AFCU will experience difficulty on two levels:
Reputation
Brand controlled by member experience
Owned by members-broken by members
Regulatory risks
Fines to credit union and individual
Noncompliance can affect financial resources
Member Experience
Compliance

10. Research Methods and Procedures
Essential Lending Training

11. Research Methods and Procedures
Surveys
Sample:
All lending personnel hired since July 2016 including frontline staff, support staff, and internal transfers
Content:
Questions regarding training experience during onboarding, lending specific in the service center, and ongoing training to support initial training

12. Research Methods and Procedures
Interviews
Sample:
Lending leadership responsible for new lending staff hired since July 2016
Content:
Perspective concerning current lending training and the future development of the program

13. Analysis and Findings
Essential Lending Training

14. Analysis-Surveys Interviewing and Sales Follow Up and Loan Closing
Questions 1-7 divided into 3 categories
Each category rated 5-1 (5=Strongly Agree, 1=Strongly Disagree)
Questions 8-9 were short answer
Question 10 was open to any additional comments
Interviewing and Sales
Credit Analysis
Follow Up and Loan Closing

15. Analysis-Interviews Current Structure Future Needs
Ten questions on perspective
Current lending training structure
Suggestions for future development
Current Structure
Future Needs

16. Findings-Surveys Most confident in Credit Analysis
Some struggle with Interview and Sales
Significant deficiency in Follow Up and Loan Closing

17. Findings-Interviews Importance of ongoing training
Immediate supervisor should be ultimately responsible for training
Trainer should be expert in the field they are training
Accountability for lack of performance

18. Recommended Action Plan
Essential Lending Training

19. Recommended Action Plan
Standardized training program-Essential Lending Training
Frontline training:
Initial training by Direct Consumer Lending (DCL)
In branch training by designated branch staff
Ongoing training and evaluations would be a combined effort from DCL and branch trainers
Support staff training:
Initial, experiential, and ongoing training performed by designated staff within the department

20. Recommended Action Plan
Personnel Structure
Head of Essential Lending Training reports to EVP/CLO
Works closely with designated training staff
Develop curriculum and ongoing training

21. Recommended Action Plan
Scheduling:
Initial training
Adapt to branch schedule
Schedule
Initial Training
1-2 weeks
Follow Up Training
Determined by branch
Ongoing Onsite Training
Tuesday-Thursday based on availability

22. Recommended Action Plan
Cost and Resources needed:
Salary for head of ELT
Office space
Workstation
Training material and supplies

23. Feasibility
Urgency

24. Feasibility
Few additional resources needed
Minor organizational structure change
Urgency
Immediate need
Ensure future success
Promote loyalty

25. AFCU Legacy Essential Lending Training
This training will help protect and further build the reputation of AFCU as the preferred financial institution in Arkansas.