As deposit bases swell, interest rates remain low, and origination opportunities shrink, financial institutions should consider the increasing benefits of loan participations. Participations allow the sharing of loans among multiple institutions, giving credit unions and banks access to new, diversified sources of attractive interest income.

In our Next Generation Guide to Loan Participations, you’ll learn how:

  • Technological innovation has reduced the historical friction and costs associated with loan participations, making it easier for credit unions and banks of all sizes to leverage this strategy for balance sheet management.
  • Buyers of loan participations earn returns on assets without having to undertake the same marketing, research, and servicing processes that accompany in-house origination, while sellers of loan participations can reduce the in-house manual administrative effort, manage portfolio risk, and earn non-interest income via loan sale premiums or loan servicing fees.
  • “Forward flow,” a proprietary ALIRO feature, enables both buyers and sellers to better plan and anticipate supply and demand in the lending marketplace through recurring loan participations.

Download the Next Generation Guide to Loan Participations to learn more about the benefits of this evolving strategy.