Independent Banker - April 2021 - 20

PORTFOLIO
allowing dealers to submit credit
applications from buyers direct to
lenders. Those documents also are
tailored to requirements for individual
lenders, products and states where a
dealer operates, which creates some
added efficiencies for banks.
SouthState Bank has two channels
for its marine lending. One is a directto-customer
model, where its bankers
work with in-branch customers or
online loan applicants. The other
is its marine division, which has
relationships with dealers in the six
states it serves. Those dealers market
loans directly to their customers,
which creates a steady pipeline of
new business.
SouthState Bank uses direct mail
and email marketing for all of its
" Even beyond COVID, the trends indicate that
people really want to get outdoors and create
lasting memories. So, I think the outlook for
2021 and beyond is very bright. "
-JEFF FULP, SOUTHSTATE BANK
recreational loans, as well as more
targeted digital marketing based on
what consumers are searching for
online. The community bank also
recently redeveloped its website
to make its loan offerings more
prominent. " We want to make sure
[potential customers] know that we
make these types of loans, " Fulp says,
" and that we're here to help them
when they have a need. " 
Beth Mattson-Teig is a writer
in Minnesota.
Recreational lending: What the data says
COVID-19 has accelerated a
number of different trends, and
growing consumer interest in
outdoor recreation is one of
them. That begs the question
whether this shift is a flash in
the pan or if it represents a
sustainable financing opportunity.
" Some sales were pulled
forward from 2020, but I don't
think it is as much as people
think, " says Chet Heughan, senior
director of indirect lending
solutions at AppOne, a software
firm in St. Cloud, Minn.
Recreational purchases also
had been growing for several
years before the pandemic.
According to a report from
the research firm IBISWorld,
recreational vehicle dealers in
the U.S. generated $27.5 billion in
revenues in 2020. Between 2015
and 2020, the annual growth rate
was 2.1%. That is forecast to rise
to 3.2% over the next five years.
The report cited baby boomers'
continued spending power
and buyers' increased access
to credit as two contributing
factors to that growth. Industry
associations are providing more
education and resources to
dealerships, which Heughan says
is helping to drive sales. There
have also been efforts to make
national and state parks more
accessible to boats and RVs,
which is creating opportunities
for vehicle owners.
So, even though it appears that
boat and recreational vehicle
purchases surged in 2020,
demand has been developing
steadily for the past decade,
Heughan adds.
It's also notable that industry
growth has come despite last
year's economic slowdown,
which is usually detrimental
to large purchases. During the
Great Recession, 35% of its
all-boat dealers went out of
business. However, boating has
provided an escape for families
when other activities were
limited or unsafe.
" By all indications, 2020 was
a record year for the boating
market, " says Matt Gruhn,
president of the Marine Retailers
Association of the Americas,
adding that dealers are seeing a
significant number of first-time
boat buyers.
" We're seeing all kinds of
families and kids getting involved
in boating, and that will have a
lasting impact on our industry. "
20 Q ICBA Independent Banker Q April 2021
Independent Banker - April 2021

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