Metro CU Partners with Salus to Launch Automated Small-Dollar Lending Program

Traci Michel

Metro Credit Union, a $3.2 billion credit union based in Chelsea, Mass., has partnered with Salus to launch an automated small-dollar lending program designed to attract younger demographics and serve underbanked members.

“What Salus offers is such a light lift in terms of implementation,” Traci Michel, SVP Chief Operating Officer & Chief Strategy Officer at Metro CU, said. “It's pre-integrated with our core provider. It doesn't require a digital banking integration, which can be a barrier for many credit unions when launching a new product. Loan servicing, being automated on core and supported by existing workflows for personal loans, is very straightforward. However, lifting and shifting the underwriting burden, coupled with instant funding, is what truly made it an easy decision.”

Additionally, Metro recognized that a significant portion of its membership was turning to neobank/fintech providers, payday lenders, check-cashing stores and title loan providers. Using Salus, Metro hopes to stop watching its members go elsewhere and stay at the credit union for their small-dollar credit needs.

Metro is taking a measured approach to the rollout, initially offering the product to a targeted segment of members before expanding availability. The credit union will establish concentration limits that allow the board and risk committees to monitor performance while maintaining appropriate risk controls.

"This is one of those items that falls into the category of ‘existential crisis’ for credit unions. We need to be offering these products and services to fulfill our mission. It's not a matter of should you - it's how do you get there," Michel noted. “At the end of the day, the risk of not taking action on this is greater than the risk of moving forward.”

Salus Founder/CEO James Chemplavil announced, "We're excited to partner with Metro Credit Union as they aim to attract Gen Z consumers and serve their existing low-to- moderate income members. Traci and her team understand that meeting members where they are and acting quickly is critical to competing with fintechs, neobanks and predatory lenders. We look forward to helping Metro reach new and younger members while providing their existing membership with a sustainable alternative to high-cost payday loans.”

Michel also could not say enough about Salus’ implementation process. "Their team is really impressive. The process has been smooth, collaborative and well‑managed, making it a refreshing experience overall.”

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