Royal Credit Union’s originations have increased 9% year over year as of July, thanks, in part, to the reduction of 69 different fees, Jesse Smith, vice president of consumer lending and servicing, told Powersports Finance.
The credit union started to eliminate punitive fees in 2012, and today none remains, he said.
“As a credit union, we don’t want to exert extra, unnecessary financial burdens on our members, so Royal Credit Union has eliminated these miscellaneous fees to maximize members’ benefits,” Smith said.
Lower loan and deposit rates have also contributed to the uptick in originations, he said.
Separately, the Eau Claire, Wis.-based credit union announced earlier this month that it will close three branch locations in its home state to “increase efficiencies and member benefits.” However, Royal CU’s long-term goal is to expand its business rather than “closing off more,” Smith said. “It is not easy for a credit union like us to open an additional office,” he said. “Credit unions are nonprofits and community-based, so it is not entirely up to us to open a new branch, even if we’d like to.”
The lender operates in 42 counties in Minnesota and Wisconsin; it makes loans for about 50 powersports dealers.