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[…]
Prior to joining the CUAC family earlier this year, Amarillo Community Federal CU, like many other credit unions across the country, was operating an indirect program using a patchwork of manual tools. Scott Rose, the new President and CEO, began to look at all facets of the credit union’s operations to determine how best to become more efficient and effective. The indirect lending program was one of his first stops.
When credit unions think of indirect lending, the first thing that comes to mind is risk. Risk is inherent with any type of lending; however, with indirect auto lending, risk can be exacerbated by elements created by the dealer and the inability for the credit union to personally interact with the member.
Indirect auto lending arrangements are on the rise. Credit unions and lending institutions can maximize their profits and diversify their investment portfolios by making sure they get their share of this expanding sector of the economy.
Indirect auto lending arrangements can provide added help for your credit union in acquiring new customers and ensuring that you get your fair share of this valuable sector of the consumer loan marketplace.