ONTARIO, Calif., Nov. 29, 2016 /PRNewswire/ -- CU Direct, the nation's leading lending technology and automotive solutions provider for credit unions, has helped its credit union partners collectively become the second largest auto financing source in the nation, surpassing Ally Bank. In aggregate, the more than 1,000 credit unions using CU Direct's CUDL Lending Platform have been the nation's third largest financing source the previous two years.
"Our goal has always been to help our partner credit unions and auto dealers create efficiencies and grow their overall market share," explained Tony Boutelle, president and CEO of CU Direct. "We are proud to provide solutions that achieve these objectives for our credit unions, as illustrated by this most recent data. CU Direct remains dedicated to developing and improving technology solutions that drive our credit unions' lending business and enable auto dealers to grow their bottom lines and cultivate customers for life. We could not be more excited for everyone who has contributed to this success."
Consumers are turning more toward credit unions as a trusted source of auto loan financing. Today, auto lending makes up one third of credit unions' total loan portfolio, and has the fastest rate of growth among all credit union portfolio segments, including first time mortgages, according to CU Direct data. Credit unions as a whole continue to be a major force in the auto lending space, holding 22% of market share, according to AutoCount.
"Without CU Direct, we would not have experienced the success we've had in the auto lending marketplace," noted Paula Kenny, senior vice president lending/training at America First Credit Union. "We fund approximately $100 million in auto loans a month through the indirect channel, as a direct result of our relationship with CU Direct. By partnering with CU Direct, we've been able to build meaningful relationships with both franchise and independent dealerships, as well as open numerous new markets."
Credit union lenders on the CUDL Platform are experiencing the highest loan origination growth rate (15.4 percent) of any auto lender among the top nine lenders in the nation, according to data from AutoCount, and CU Direct.
The company's CUDL platform connects credit unions to more than 13,000 auto dealerships across the country. This enables dealerships to sell more cars faster and easier to the 42 million potential buyers who are members of CU Direct partner credit unions, as well as other qualified consumers.
"In the San Antonio (Texas) market, credit unions play a major role in helping dealers obtain financing for CU members," said Tim Rivers, Finance Director for Gunn Honda. "We have been doing business with credit unions in excess of 20 years, and have found these relationships to be extremely rewarding. CU Direct has provided a great lending platform for us to continue to grow and expand our business through the credit union channel."
About CU Direct
For more than twenty years, CU Direct has been a lending technology leader, helping credit unions fund $209 billion in loans. More than 1,000 credit unions rely on CU Direct's solutions to generate loans, create efficiencies, and grow membership. From CUDL, the industry's number one auto lending platform, to the industry's revolutionary Lending 360 Loan Origination System, and Lending Insights dynamic analytic tools, CU Direct develops the technology that helps credit unions advance their lending programs and overall portfolio success. 13,000 auto dealers nationwide use CU Direct's automotive solutions to connect with credit unions and their members to drive sales and increase their bottom lines. For more information, visit www.cudirect.com. Connect with CU Direct on Twitter and LinkedIn.
Data included in this report was generated by AutoCount, an Experian company, in conjunction with CU Direct.
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SOURCE CU Direct