CUDL WHITE PAPER REVEALS STRATEGIES FOR SUCCESSFUL INDIRECT LENDING PROGRAMS
Ontario, CA, March 22, 2012 -- CUDL (www.cudl.com), the credit union industry’s leading auto lending solutions provider, and administrators of the nation’s largest auto lending network for credit unions, has released a new white paper that examines the keys to successful credit union indirect auto lending programs.
The white paper, “Successful Indirect Auto Lending Programs Build on Credit Union Strengths in Relationship and Portfolio Management,” addresses the keys to credit union success within the indirect lending marketplace by profiling a cross section of small to large credit unions that had lower charge-off and delinquency rates when compared to the credit union national average.
The paper reveals how the credit unions formulated their indirect auto lending programs and the underlying processes they developed to help ensure a smooth and profitable outcome.
Among the key factors identified in the white paper for running successful indirect programs were consistency, visibility and accountability in all areas, from reporting and analysis, communication, dealer relationship management, underwriting, staff development and training, and portfolio management.
Auto lending continues to be a significant portion of the credit union loan portfolio, accounting for 29% of credit union loans outstanding, with indirect auto loans accounting for approximately 43% of credit union auto loans in Q3 2011. Credit union market share within the auto lending arena has remained above 17% since May of 2011 and currently stands at 17.4%.
The white paper points out that indirect auto lending continues to provide credit unions with a viable opportunity to increase loan penetration, grow member base, improve loan to share ratio and, as a result, diversify and grow their balance sheets.
“Indirect lending continues to be a very viable avenue for credit unions to significantly grow their auto lending portfolio,” states Joe Greenwald, vice president of marketing and communications at CUDL. “This white paper provides important insight to the key dynamics and processes that credit unions have put in place to help ensure the success of their indirect lending programs.”
Credit unions interested in requesting a copy of CUDL’s white paper can do so by visiting CUDL’s website at www.cudl.com/cudl-whitepaper.
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Based in Ontario, California, CUDL® (a CU Direct Corporation flagship brand) is the leader in indirect and point-of-purchase lending services for the credit union industry. As a Credit Union-owned Service Organization, CUDL develops custom applications, training and marketing programs to help credit unions achieve their indirect vehicle lending goals.
More than 990 credit unions and 8,500 dealerships nationwide rely on CUDL’s national lending network to better serve members’ vehicle shopping needs and drive member financing at the point-of-purchase. For more information about CUDL visit www.cudl.com and www.cudlautosmart.com.