One of the most important reasons for utilizing an indirect program is the ability to create new member loans. It is imperative that Credit Unions be at the point-of-sale for their members to compete against captive finance companies, national & regional banks as well as its local competitors. With auto loans becoming more and more of a commodity, it is important to not only increase membership size; but, also capture new members that provide cross-sell opportunities for the Credit Union. Allow CUAC to share its best practices on accomplishing both.
In today’s lending environment, it is essential that Credit Unions diversify their loan mix. Not simply so that they can service all of their members’ needs; however, to also diversify their portfolio mix. With point-of-sale opportunities on a variety of products, Credit Unions can greatly broaden their loan portfolios with responsible levels of risk and return.