How indirect lending maximizes efficiency and member value
Introduction
For more than 60 years, New Mexico-based State Employees Credit Union ($1.1 billion in assets) committed itself to providing its members the best service possible, including adopting new technologies that offer greater value and improve the member experience.
Based on this commitment, State ECU brought its indirect lending program in-house, requiring an evaluation of their technology options to ensure high service levels were maintained for members and dealers alike. State ECU ultimately selected Origence’s indirect lending platform and its CUDL Network of dealers to improve efficiency, increase volumes, and grow revenue.
The decision paid off. State ECU observed marked improvement in monthly applications received and look-to-book ratios with Origence indirect lending.
The challenge
Modernizing an outdated indirect lending platform
The solution
An indirect lending platform built to grow their business
The results
- 300% increase in indirect lending volumes
- 100% increase in monthly applications
- The ability to review previous applications
- 60-65% look-to-book ratio
“On top of the dramatic growth in lending volumes, our partnership with Origence has allowed us to offer the best possible service to our members, which has always been our top priority.”
Mark Salazar
Assistant Vice President
State Employees Credit Union
Modernizing an outdated indirect lending platform
Excellent service is at the heart of State ECU’s mission. Their legacy indirect lending platform no longer provided the capabilities they needed, resulting in a series of challenges that hindered their ability to deliver exceptional service to their auto dealers. These challenges also filtered down to the member experience, making it more challenging to serve their community.
As State ECU brought indirect lending inhouse, they searched for a new partner for their lending platform. They sought a company capable of offering the products and services needed to elevate their indirect lending. Additionally, it was just as important to find a true partner to guide them through the journey.
Ultimately, State ECU narrowed its sights on a partner that could help maintain control over its lending processes, exceed member expectations, and provide its auto dealers a streamlined financing process.
Their legacy indirect lending platform no longer provided the capabilities they needed, resulting in a series of challenges that hindered their ability to deliver exceptional service to their auto dealers.
“The Origence platform has absolutely transformed our lending processes. We’ve witnessed a nearly 300% increase in our indirect lending volume, with access to a broader network of auto dealers previously beyond our reach. While we anticipated business growth upon bringing funding in-house, we had not predicted an increase at this scale — Origence played a pivotal role in achieving this level of success.”
Assistant Vice President
State Employees Credit Union
An indirect lending platform built to grow their business
State ECU and Origence partnered in 2022 to implement its indirect lending platform, designed to improve the lending process for both credit union members and auto dealers alike.
State ECU selected Origence for two primary reasons. First, they provided the right technology and process improvements to enhance their dealer and member experience. For example, a user-friendly application makes the process faster and easier for borrowers, underwriters and dealers. Additionally, the numerous available reports empowered the credit union to stay competitive in indirect lending, helping them to make necessary program adjustments.
Overall, Origence’s personal attention and care they demonstrated throughout the relationship won them over. Every interaction, from the initial discussions through implementation and beyond, reinforced that Origence cared about State ECU’s success and would help them reach their goals.
Immediate improvement in lending program
Once State ECU implemented Origence’s indirect lending platform, the credit union began seeing an immediate improvement in its lending program.
With its new partnership with Origence, State ECU reached more auto dealers than ever before, which led to a marked increase in lending volumes. State ECU experienced an especially pronounced growth in its monthly applications received, which doubled since beginning its partnership with Origence.
increase in monthly applications
increase in indirect lending volumes
look-to-book ratio
Long-term rewards
Origence’s platform enabled the State ECU team to make changes that improved their operations and increased revenue. The Origence platform gave State ECU access to numerous reports that provided specialized data and insights into State ECU’s business. This gave State ECU the direction and confidence to make the right moves.
By broadening the number of auto dealers State ECU could access through the CUDL dealer network, it could offer more competitive interest rates for its auto loans. This enabled the credit union to increase lending volumes while also providing better member service, which is State ECU’s top priority.
State ECU aimed to revamp its portfolio through its indirect lending program. In this respect, the collaboration with Origence proved successful. In a financial climate characterized by high interest rates and industry-wide liquidity concerns, State ECU’s portfolio restructuring strategy, coupled with the adoption of new technology, provided a robust avenue for revenue generation.
Moreover, State ECU’s greatest motivator for transforming its indirect lending program was to offer better service to its members. Origence’s indirect lending platform empowered State ECU to deliver a personalized, quality indirect lending service, something that was lacking before. Now, with Origence at its side, State ECU can reach more members with the high-quality products and services they need, reaffirming its commitment to its members, employees, and communities.
