While most sectors are feeling the bite of sharp declines in home and auto sales across the country, credit unions and CUSOs are faring better than many of their larger lending counterparts.
According to a recent article, credit union auto lending market share has been steadily increasing since the beginning of 2007. “Indirect loans originating from credit unions took up 15.8% of the market in January, and that figure jumped to 20.5% by August.”
Several of the large financial lenders (GMAC, Chrysler Financial) and many banks have tightened their lending policies while others have completely exited the market. Some auto manufacturers are no longer offering leasing terms. As growing numbers of consumers turn to credit unions, it is a great time to capitalize on the opportunity.
Credit unions already engaged in Indirect Lending, or those thinking about Indirect Lending offerings, must be prepared to manage the increased volume of loan applications, give fast approvals, and closely manage risk. By using software for the complete loan origination process, credit unions can automate the process for dealers and provide automated underwriting, and manage criteria carefully.
The bottom-line result of using a software automation solution for indirect lending is the ability to have high productivity without adding additional staff. The entire loan process can go paperless in a highly effective program that allows you to be competitive while gaining higher loan volumes.
What should you look for in an effective Loan Origination Software Solution?
- Supports both Indirect and Direct lending – so that you can use one system for both sides of the business, providing for easier training and ongoing IT support
- Easy, intuitive web-based interfaces
- Bi-directional, real time integration with core systems
- Strong reporting capabilities
- Automated credit checking