Credit unions are navigating a competitive indirect lending landscape with resilience and innovation. That was the clear takeaway from a recent Origence-hosted webinar, where lending executives shared how they’re adapting to market shifts, expanding their reach, and leveraging technology to drive performance.
As captive lenders continue to claim a larger share of the market, credit unions are responding with sharper strategies and stronger partnerships. The panel explored key topics including market trends, product diversification, affordability challenges, automation, and dealer relationships. While approaches varied, one theme stood out: the value of the CUDL Network and Origence in helping credit unions grow loan volume and enter new markets is key.
Billy Wagner, chief revenue officer at Arrowhead Credit Union in Southern California ($2.5B), noted the demand has softened, but continues to respond to increased competition and rate pressure. For Arrowhead, indirect lending is a strategic tool to support national expansion. Wagner emphasized the role of the CUDL Network in simplifying dealer onboarding and ensuring business practice due diligence—critical factors when entering new territory.
Chris Hibbs, V.P. of consumer lending at Global Credit Union in Anchorage, Alaska ($12.8B), shared that dealers are reporting a 20% drop in sales, with some competitors taking on aggressive risk exposure, sometimes beyond the credit union’s appetite. To stay competitive, Global Credit Union is focused on speed—delivering fast decisions and quick fundings. While some credit unions are broadening their collateral mix to include motorcycles, RVs, and boats, others are staying focused on core auto lending.
Affordability remains a top concern. Rising vehicle prices are pushing loan terms longer to keep monthly payments manageable. While some credit unions are holding firm at 84 months, others are cautiously exploring 96-month terms for top-tier borrowers. Panelists stressed the importance of monitoring loan performance and portfolio concentration, with one noting, “We don’t want to be a niche lender” in 85+ month loans.
Panelists agreed, technology is playing a pivotal role in helping them stay competitive and agile. Nichole Pacheco, lending operations manager at Hughes Federal Credit Union in Tucson, Arizona ($1.97B), said efficiency is central to their strategy. Hughes uses Zest AI as their scoring model, along with automated approvals, fraud detection, document process automation, back-office stacking, and validation tools. These solutions enable fast, accurate responses—essential when building trust with new buyers and dealers. Consumers care less about how, and more about how quickly.
Confidence in automation is growing. Many credit unions are increasingly comfortable having 50% or more of their applications evaluated and decisioned without human intervention. With staff processing the remainder, all the panelists agree that same day turn times are the standard. Consistency is key to maintaining strong dealer relationships—setting proper dealer expectations.
Dealer partnerships are foundational to indirect lending success and due diligence is a necessity to remain relevant with the dealer. Panelists shared different approaches to dealer engagement including deploying relationship managers for in-person outreach.
Whether onboarding new dealers or maintaining existing relationships, attention to detail is essential. Evaluating factors like years in business, reputation, inventory quality, and post-funding metrics such as charge-offs help credit unions align dealer performance with credit standards. Panelists agreed that having the CUDL Network gives them huge advantages including building traction in a new geographic territory, confidence in due diligence of built-in relationship management that CUDL delivers.
Credit unions are embracing opportunities for growth. All three panelists shared strategic goals to expand into new markets using the CUDL Network, and to scale operations with Origence’s AI integrations and Origence Lending Services. Rather than competing solely on rates, credit unions win with smarter strategies, streamlined processes, and member-first experiences.
