Mergers and acquisitions in banking are on the rise this year. And this is especially exciting since valuations are at an all-time low, attracting banks that have been sidelined in previous years. 2019 just might be your time to acquire that business you’ve been eyeing.
But to participate in M&A, your CRA score must be in good standing
The Community Reinvestment Act (CRA) requires you to meet the needs of low- to moderate-income (LMI) individuals, among other groups. What better way to do so than with a new interest revenue stream that benefits both you and LMIs?
If you want to find out how medical loan financing can help improve your bank’s CRA standing, keep reading for the answer to that question and more.
Who Needs Medical Loan Financing?
Medical loan financing is the solution for patients who can’t afford to pay in full for the care they receive.
The borrowing behaviors of individuals and families bringing in less than $80,000 per year have been on the rise since 2013. Meanwhile, trends like the rise of high deductible health plans, an increasingly under- and uninsured population, and the surprise medical bill phenomenon are driving demand for medical loans.
More LMI individuals and families are taking out personal loans than ever before. And medical expense loans account for nearly 10% of personal loan activity these days, which means you can discover LMI leads through medical lending.
Medical Lending Boosts Your CRA Score
According to a 2019 Congressional Research Services report, community banks receive CRA credits for:
- Mortgage, consumer, and business lending
- Community investments
- Low-cost services beneficial for LMI areas and entities
While your bank may have these first two boxes checked, sourcing and targeting LMI leads is time-consuming. But when you partner with Epic River’s medical loan financing program, you get access to a pool of customers who are highly likely to qualify as LMIs.
Looking to improve your CRA standing but tired of endless LMI lead finding efforts? Contact Epic River to find out how our low-interest patient loan program can help you connect with LMIs and boost your CRA standing.