Miriam Mitchell, Chief Lending Officer, Addition Financial Credit Union

In a growing Central Florida market, Addition Financial is crafting strategies to better serve both consumers and businesses. Chief Lending Officer Miriam Mitchell sat down with Invest: to discuss macroeconomic headwinds, competition from fintechs and banks, the changing role of branches, and how education and community partnerships are reshaping its lending strategy and financial literacy efforts. “At every phase, from early childhood through retirement, we’re focused on helping people use credit wisely,” said Mitchell.

Over the past year, what milestones or shifts have most shaped Addition Financial’s strategy?

This year, one of our major projects and accomplishments was completing a merger with a credit union in the Tallahassee area in North Florida. That was a huge focus for us. We put a lot of effort into partnering with another credit union that is very like-minded, with a similar mission and history, so we could expand our reach across the state and help more communities and families. 

In addition to that, we’ve put a lot of focus on business banking and building partnerships with business members throughout the community and developing products and services that really meet their needs. We’ve always offered business and commercial products, but it wasn’t a major focus before. We were much more consumer-driven, so this has been a big pivot as we look at where we’ve been and where we want to go in the market, especially around reaching small businesses and helping them with financing and account management.

Which macroeconomic pressures are having the greatest impact on lending demand in Central Florida?

We’re seeing several pressures, particularly in Central Florida. We have about 1,500 people moving into the region each week, and it has been difficult to keep up with that pace when it comes to housing and affordability. There isn’t enough new home construction to account for the number of people who need to purchase homes, which is driving prices up. When you combine that with higher interest rates — even though they’ve come down slightly over the past year — it still hasn’t been enough to motivate many would-be sellers to put their homes on the market.

Affordability is a major issue, and qualifying for a mortgage is challenging when prices are so high. Your average first-time homebuyer isn’t looking for a $350,000 home, but that’s often what the market looks like. We’re also still seeing lagging effects from the pandemic in the vehicle market. During that period, borrowers were purchasing vehicles at overinflated prices because there wasn’t enough inventory. Now that inventory has normalized, many borrowers are very upside down in their vehicles. Trying to get out of those loans and into something more affordable has been difficult, and we’re seeing more people turning in cars and becoming credit-challenged as a result.

How is rising competition from banks, fintechs, and other credit unions reshaping the lending landscape?

Fintechs, automation, and artificial intelligence are huge factors. The way we lend today is very different than it was just a few years ago. We have to be much more agile and responsive because people expect decisions 24/7. That means we have to make sure our processes can accommodate that level of speed and convenience. We’ve taken a strong focus on automating where it makes sense and partnering with fintechs that offer AI-driven solutions for lending and account opening so we can remain relevant and competitive. We’re also seeing more physical banks and credit unions coming into our market. 

Historically, credit unions tended to have defined markets and you didn’t see as much overlap, but that has changed. Your territory is no longer just your territory; you should expect other banks and credit unions to move in, sometimes right across the street. We have to be prepared to compete at that level on both service and product.

What trends are you seeing in consolidation and M&A activity across the banking sector?

There has definitely been a shift. We’re seeing a lot of smaller credit unions having a harder time staying afloat as regulation and costs increase. It’s more difficult for smaller institutions to remain relevant and keep up with technology investments and compliance demands. As a result, we’ve seen more mergers where smaller credit unions partner with larger ones so they can continue to serve their membership base. 

Another trend is credit unions purchasing banks. Years ago, that wasn’t something you saw, but over the last five years there have been more credit unions buying community banks. They often share a similar philosophy in how they serve their customers and communities, so it can be a natural fit. It has also helped credit unions that have not historically been in the commercial lending space. 

By partnering with or acquiring a community bank that has that expertise and bringing it in-house, we gain more ability to serve more businesses and members with the level of expertise they deserve.

Beyond consolidation, what broader trends are transforming banking and the role of branches today?

Automation and speed are at the center of many of the changes we’re seeing. People want to be serviced quickly and conveniently, and a lot of traditional transactions can now be done digitally through ATMs, online banking or mobile banking. That means branches are no longer primarily transactional. I see branches becoming much more consultative. When people are dealing with major life events — buying a home, saving for college or retirement, getting their first credit card — they want to sit down and really understand the process.

That is where financial institutions are shifting, from providing advice to education and planning support in person, while moving routine transactions to digital channels. The long teller lines we used to see just for cashing checks or making deposits are not as common. Instead, branches are where deeper conversations happen.

How are you balancing rapid digital innovation with cybersecurity risks and member trust?

For us, it comes down to education and communication with our members. Cybersecurity and fraud issues are a huge problem in the banking industry, and we have to be proactive. We stay in close connection with our community and our members to make sure they know what to look out for so they don’t fall victim to scams. That can be as simple as reminding them why they should never give account information over the phone if someone calls them unexpectedly, or why they should never click on a link in an email or text if they’re not absolutely sure it’s legitimate.

We push out educational content that highlights real scenarios and red flags so members stay aware of the kinds of scams that are out there. The goal is to prevent those situations before they happen by giving people the tools to protect themselves while still benefiting from digital services.

How are you evolving commercial and business banking products to serve key sectors and small businesses?

We’ve recently partnered with many different companies in the healthcare and manufacturing spaces, and our approach is to go out and talk directly with those businesses about their needs. We bring that feedback back into the credit union and determine what we can do to help meet those needs. We’ve developed products around specific requests from those industries, and we’re always evolving our product line and how we deliver services to make sure we’re aligned with the communities we serve.

An important piece of that is our focus on rolling out Treasury management services through our online banking platform. That will help businesses manage their operating accounts more effectively — doing transactions from their office, including online wires, online ACH, positive pay and other tools that help them feel secure and in control of their accounts. Much of what we’re rolling out is a direct result of ongoing conversations with our business partners in the community.

In what ways are your education partnerships shaping access to credit and long-term financial literacy?

One of the key things that came out of our partnerships with local colleges is improving access to credit for students who have never had it before. A student at the University of Central Florida, for example, may want to get a first credit card, but that’s very challenging when you’re 18 or 19 years old with no credit history. 

If you do get a card at that stage, the interest rate is often extremely high. We created a first-time credit card product to address that gap. You don’t have to be a student to qualify, but it’s designed with students in mind because they’re usually the ones seeking that first access to credit. The card offers a favorable rate, and if it’s a $2,000 limit, the member only has to secure $250 in their account, not the full $2,000. 

That structure helps them build credit and learn to manage it, without requiring them to set aside a large sum of money. After a year, we review how they’ve managed the account. If they’ve handled it well, we release the hold and it transitions into a normal credit card. The rates are more in the 12% range instead of the 30–35% range you often see at larger banks. That product really came from listening to students and understanding their challenges. 

We pair that with a broader financial literacy strategy that starts as early as pre-K. We partner with organizations to help young children understand basic concepts about money, then build on that at each stage. We even have high school branches that are fully run by students, where they learn money management skills in a real-world environment. 

At every phase, from early childhood through retirement, we’re focused on helping people use credit wisely. We don’t want young people to start out by maxing out a $2,000 credit card and only making minimum payments, then carry that burden into vehicle loans and eventually into the mortgage process. Our goal is to equip them with the knowledge and tools to make sound decisions so credit becomes a powerful tool, not a long-term obstacle.