By: Vicky Kinsey

September, 2023

Before embarking on its partnership with CUAC, Greater Kentucky Credit Union had been using another Credit Union CUSO to administer their underwriting for their Indirect Lending Program.  The need for a change in their Indirect loan origination process became apparent when their previous service provider notified them that they would no longer offer this service. Determined to maintain their hard-earned indirect relationships program, the credit union sought alternative solutions and started the search for a new partnership to continue and enhance their indirect lending operations.

Partnership Goals

Greater Kentucky Credit Union outlined a clear set of objectives for their new partnership. First and foremost, they aimed to continue their robust auto loan portfolio characterized by the quality of loans and become the preferred lender for dealerships in their region. To achieve these ambitious goals, they prioritized certain vital factors, including flexible service hours, expeditious and consistent decision-making processes, the preservation of solid dealer relationships, and a notable improvement in their Look-to-Book ratio.

While the credit union had no prior experience with CUAC, they were naturally drawn to CUAC’s services and esteemed reputation in the industry, primarily due to the compelling endorsements and positive references they had encountered.

Why CUAC?

Several compelling factors influenced the decision to partner with CUAC. Foremost, Kurt Howard’s presentation made a persuasive case for CUAC’s services, offering insight into the transformative potential of the partnership. Additionally, the credit union received resounding endorsements from references who had previously experienced the benefits of collaborating with CUAC. Competitive pricing further solidified CUAC as the preferred choice, ensuring Greater Kentucky Credit Union would enjoy quality service and cost-efficiency.

However, what truly established the partnership was CUAC’s unwavering commitment to facilitating a seamless transition with dealerships and staff. CUAC promised to share best practices and invaluable experiences to help enhance lending guidelines. “CUAC has not only met but exceeded our expectations and commitments made during the partnership discussions,” said Greater Kentucky CU President and CEO Debbie Pyle. “They have positively impacted our credit union’s lending operations by maintaining strong dealer relationships, reducing staff interaction, lowering delinquency rates, and providing transparent reports.”

Debbie further described the collaboration with the CUAC team as “easy and responsive,” emphasizing the effectiveness of their client portal and ticketing system. CUAC’s dedication to staying updated with rate changes and providing valuable insights, such as enhanced underwriting guidelines, has consistently elevated the quality of service and decision-making for Greater Kentucky Credit Union.

Kurt Howard, COO of CU Alliance, had this to say about the relationship with Greater Kentucky CU.  “I have really enjoyed working with Debbie, Michael, and the rest of their team.  I am happy to hear that they are satisfied with our service as we take a lot of pride in that.  In the indirect world, it is all about speed and quality of service.  I am looking forward to working with the GKCU in the future as we look for even more opportunities to help them achieve their lending goals.”

Operational Improvements

CUAC has achieved significant operational improvements throughout its Greater Kentucky Credit Union partnership. These include establishing a streamlined process directly connecting to CUAC, eliminating the need for separate contracts with platforms like Dealertrack, and simplifying the loan origination process. These changes have translated into measurable outcomes in the form of robust loan approvals, swift decline decisions, and the elimination of subprime approvals. Consistent underwriting practices have significantly improved dealer understanding of lending guidelines, reducing confusion, and enhancing dealer relationships.

Looking Forward

Greater Kentucky Credit Union envisions continuing its collaborative journey with CUAC through regular program reviews. This ongoing exchange of ideas and insights ensures that opportunities are maximized without taking on unnecessary risk, further solidifying their partnership’s long-term success.

For other credit unions considering an indirect lending solution like CUAC, Greater Kentucky CU offers valuable advice: understand the inherent risks involved, diligently vet dealerships for honesty and reputation, and never underestimate the importance of thoroughly evaluating a potential vendor’s reputation, references, experience, consistency, and responsiveness.

The credit union’s future goals include increasing the Look-to-Book ratio and exploring the possibility of utilizing CUAC for in-house auto loan decisioning. They anticipate that CUAC will continue to provide innovative ideas to incentivize dealerships to choose them for approved deals over other financing and F&I providers.  Greater Kentucky Credit Union does not view CUAC as a short-term fix but as a steadfast, long-term partner in enhancing its lending operations. Their partnership with CUAC has led to significant and sustainable improvements in efficiency, dealer relationships, and lending quality, setting a solid foundation for a prosperous future.

Transform your indirect lending operations, contact Kurt Howard to schedule a discussion about leveraging technology and tailored services to achieve your lending goals. Together, let’s shape a future of sustainable lending success for your credit union. Email Kurt Howard at Khoward@cuacuso.com or www.cuac.com/contact-us.