Case Studies

Visions FCU leverages the power of CUDL to increase auto loans through the indirect channel, improve dealer production, and expand into new markets.

Visions FCU implements CU Direct’s Lending 360 Loan Origination System, providing a true omni-channel experience for both members and employees. As a result, the credit union has tripled online and mobile loan volume, increased organization-wide consumer loan origination totals by up to 60%, improved quality control and efficiency, and has maintained member service ratings.

Improve level/effectiveness of communication with members and prospects throughout the mortgage lending process.

Star One has a strong reputation, providing some of the best benefits in the country to its members, and yet realized that there was an opportunity to enhance its outstanding service, specifically in its mortgage lending business.

La Capitol FCU Dramatically Improves Speed and Efficiency of Loan Decisions, Enhances Member Engagement and Increases Overall Loan Activity with Lending 360.

The Credit Union of America and Scholfield Honda case study examines the keys to developing and maintaining a successful credit union-auto dealer partnership in today’s automotive lending landscape. By looking at their partnership from their separate perspectives, the case study reveals how the credit union and the dealer have forged a vital relationship that has resulted in continued growth for each organization, and sheds valuable insight to the challenges, the solutions and the benefits of their partnership

Reduce expenses and grow auto lending portfolio.

Citadel operated a point-of-purchase lending CUSO for nearly thirteen years. After closing the CUSO, Citadel was challenged to make its auto lending program more profitable. It had been using DealerTrack as its indirect lending provider and accrued $30,000 in monthly expenses from application fees, dealer “shotgunning” and paper that did not meet the credit union’s lending criteria. Furthermore, only 23% of the indirect loan applications received was actually funded. Citadel needed a solution that would cost less and allow the credit union to set forth tighter lending parameters for its dealers. During its pursuit to find a solution that would accomplish these goals, the credit union was also seeking solutions that would provide more auto buying services for its members to expand their auto loan portfolio

Increase underwriting efficiency and compliance.

DCU determined that its automated underwriting process was substandard and antiquated. Senior level loan officers were reviewing every single application, making it difficult to provide consistent loan decisions. Subsequently, approvals were slow, even for standout members with top-tier credit.

Monitor loan performance over time to measure delinquency and loss ratios.
Schools Financial Credit Unions’ loan portfolio was experiencing rapidly rising delinquency and loss. The credit union needed to be able to identify from which areas of their portfolio they were coming from and why they were occurring. However, the tools they were using were inadequate in revealing the issues. Additionally, Schools Financial CU knew that continued loan growth was important, but found it difficult to determine which portfolio segments presented the best opportunities.

Automate the processing of retail loan applications.

For eight years, San Antonio Credit Union had been working with a number of merchants in the San Antonio, Texas area to provide point of purchase retail financing to their members. Its process worked, but had challenges that prevented it from thriving like the credit union had envisioned. San Antonio Credit Union’s system for indirect retail loans allowed merchants to electronically submit their customers’ applications; but the system lacked the ability to auto decision, electronically transmit loan documents, and provide ACH funding to merchants. The manual processing of loans and inability to work outside of branch hours made the credit union’s existing system inefficient and ineffective. These restrictions prevented many retailers from initiating a finance program with the credit union on a consistent basis


Increase loan volume and add new members.

In addition to a desire to increase auto loan volume, as well as add new members, Erie Federal knew that only booking loans in-house meant it was losing substantial business to dealer-originated loans. The credit union sought to add a new member service that would enable members to research vehicles, then apply for loans and get approval prior to visiting the dealership.

Erie Federal also looked for a service that both promoted auto lending as an added benefit to members and enabled the credit union to tap into members’ auto buying process earlier and capture more member loan opportunities.