Why borrowers are not choosing payment protection

Solving the participation gap: When borrowers want payment protection, but don’t always get offered it

When a member gets approved for a loan, the "good news" moment lands. But for many borrowers, the real question doesn't show up at closing. It shows up later: What happens if life interrupts my ability to pay?

Borrower anxiety is far from rare. In a TruStage® consumer research study, 91% of borrowers expressed concern that a life event could impact their ability to make loan payments.¹

For credit union lending leaders, this presents both a responsibility and an opportunity: Ensure that members are educated and offered payment protection such as debt protection and credit insurance, across every channel, every time.

How improving the lending experience keeps growth on track

Lending leaders are also under pressure from current market conditions. New revenue pressures, liquidity constraints, increasing competition and high staff turnover are slowing loan growth and eroding confidence on the front line.

When it's harder to grow through volume alone, improving the lending experience becomes an effective way to drive results. This is especially true when those changes help improve noninterest income and member financial well-being.

Why the participation gap persists

More than 80% of borrowers say they would be likely to add protection to their next loan, yet nearly half don't remember seeing offers for it.¹ That gap isn't simply a missed income opportunity. It's a missed member-care moment — a chance to provide reassurance and support before hardship ever happens.

And the reason that gap persists usually isn't intent, it's execution.

Stronger results start with a stronger system

When members don't add payment protection, the root cause is rarely "our lenders don't care." It's typically a set of predictable issues in the lending program:

• Inconsistent workflows across channels (branch, contact center, digital) mean members aren't always offered protection.
• New employees lack training to lead confident conversations.
• Employee skills fade without a coaching rhythm and reinforcement.
• Limited visibility makes it difficult to correct patterns you can't see or measure.

That's why credit unions that succeed in closing the participation gap take a systemwide approach, not a one-time training course.

This is where the TruStage Lender Development Program stands apart

The Lender Development Program (LDP) is a proven operating system built for today's lending reality. This proprietary program has been around for over 20 years, and it's not only still here — it's been refreshed to include blended learning approaches, an increase in on-site training and technology-enabled activation.

At its core, the LDP is designed to empower confident, member-focused lending teams. Through leadership, coaching, training and technology support, lending staff will gain the skills to consistently offer payment protection in every channel — including in-person conversations and digital loan applications.

The success of the LDP is built on four cornerstones:

1. A champion leads it: A dedicated leader guides the internal program and ensures that efforts align with organizational goals.

2. Coaches reinforce it: TruStage coaches reinforce best practices, support proper adoption of solutions and upskill credit union leaders with our unique approach.

3. Training builds it: Continuous training advances your staff's product knowledge, sales skills and understanding of member needs.

4. Technology activates it: Tracking and enablement tools help turn learnings into day-to-day behavior and support consistent offers across channels.

Credit unions that commit to all four cornerstones achieve an impressive 45% average participation rate.² Ninety-nine percent of credit union employees that participate in LDP trainings say the topics are relevant to their needs and goals.³ Together, these findings demonstrate the compounding value of a connected system.

A practical next step

To help close the participation gap, start with this simple question: Which cornerstone is the weakest today — ownership, coaching, training or technology — and what would "better" look like by end of quarter?

Once the biggest opportunity is identified, the next step is to put a plan in place. For a proven framework, tools and support, you can visit the LDP website or contact your TruStage sales executive today.