LEAD STORY

Highlights from CUNA Mutual Group's 10th annual Discovery Conference in Orlando:

Back to the future

Credit unions are drifting away from the essence of lending, according to Dave Schurman, vice president and national sales officer for CUNA Mutual Group, Madison, Wis. "We used to ask people about their lives," he says. Now, some credit unions are sacrificing quality loan applications in the quest for speed.

To move forward, Schurman says, credit unions should get more information from members. "How much time would four or five closed-ended questions add to your lender's day?"

Key areas to address when members fill out loan applications:

* What's the value of your house? This might lead to a home equity loan.

* How old are your children? They might need student loans, insurance, or financial planning.

* What type of car do you have? It might be time for an upgrade.

* What type of mortgage do you have? It might be time to refinance.

* What savings and hivestments do you have outside the credit union? "Follow up this question by asking, 'When is the last time you reviewed your financial plan with a professional?' " notes Dave McCarron, CUNA Mutual's regional vice president of lending.

* What would you change about your credit card? Credit unions' plastic offerings don't have confusing and expensive rate changes.

Schurman and McCarron advise adding a sixth "C" to the traditional five Cs of lending (character, capacity, collateral, credit, and capital): common sense. That means listening to members and determining what they need.

Labor shortage looms

Credit unions are about to enter a "perfect storm" of a talent shortage due to a demographically driven labor shortfall, says Sharon Jordan-Evans, president of the Jordan-Evans Group, Cambria, Calif., and co-author with Beverly Kaye of "Love 'Em or Lose 'Em: Getting Good People to Stay."

She says these key factors will drive the looming talent shortage: a healthy economy and brighter job market, spelling more options for good workers; unhappy employees ready to jump ship; and changing demographics. These foretell a shortage of up to six million skilled workers by 2012, according to the U.S. Labor Bureau.

To retain and engage talented employees, JordanEvans says:

* Support employee learning and growth. Enrich and enliven employees' work, and help employees identify opportunities to move laterally and vertically.