Automated decisioning, advanced risk analytics help credit union increase auto loan volume and build community focus following a smooth six-week implementation
AUSTIN, Texas--(BUSINESS WIRE)--May 5, 2023--
Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the Company”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today released the results of a case study that shows how the state of Washington’s Sound Credit Union has grown its direct and indirect automotive loan volume and yield with Lenders Protection™.
Sound Credit Union implemented Lenders Protection in just six weeks, allowing the credit union to book new, risk-mitigated automotive loans within its first month of using the program. The credit union now funds $1-3 million in auto loans every month, with an average loan of $30,000. Its yield has increased 8% since booking these loans.
“This was one of the smoothest implementations we’ve ever done, well worth the results and dollars that we put on our books,” said Tammie Atoigue, Vice President of Consumer Lending at Sound Credit Union.
With Open Lending, Sound Credit Union has found new opportunities to build on its community-centered mission. Using Lenders Protection’s risk analytics powered by both federated and alternative data, the credit union has been able to better assess borrower potential and unlock service to qualified near-prime borrowers formerly excluded by traditional underwriting methods.
“We have a heavy focus on addressing challenges our communities are up against,” Atoigue said. “We were seeing people in our community pay 25-30% at ‘buy here pay here’ lots for a car that was going to break down. Then they would struggle to come up with money for unexpected repairs. Lenders Protection helps us put borrowers in reliable cars with reasonable rates and payments they can afford.”
The program’s full-service lending capabilities have also helped Sound Credit Union strengthen its relationships with local dealerships. Since implementing Lenders Protection, Sound receives more prime and non-prime loans in the indirect channel from dealers in the Puget Sound area, including dealers the credit union had never seen loans from before.
Atoigue also noted how the Lenders Protection platform streamlines the collections process. With an easy-to-use interface and direct access to claims administrators, Sound Credit Union has not had to add any new employees to its collections team to facilitate the program. “Filing claims is extremely easy,” Atoigue said.
Sound’s direct loans are processed using MeridianLink Consumer Classic LOS, a robust platform with access to many third-party integrations, including an out-of-the-box integration with Lenders Protection.
“Where some LOS’s, especially custom ones, can take months or even years to incorporate new technology, MeridianLink Consumer Classic and Modern Experience LOS are practically self-service,” said Matt Moody, Vice President of IT Integrations at Open Lending. “The implementation is more of an activation that takes place with a few clicks inside your existing system. It doesn’t require planning meetings or a team.”
MeridianLink’s standardized platform makes Lenders Protection easy to implement. It can be activated within minutes and automated based on custom user-determined parameters. Full implementation typically takes between four and six weeks and seamlessly integrates with MeridianLink to deliver results without adding complexity or friction to the loan underwriting and funding process.
Open Lending will highlight these capabilities at the MeridianLink LIVE User Forum in Anaheim, California from May 8-11. Visit our team at booth #13.
To learn more about Lenders Protection, read Sound Credit Union’s full testimonial or visit www.openlending.com.
About Open Lending
Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For 20 years we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.
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Alison Smith for Open Lending
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Source: Open Lending Corporation