Eliminating Blind Assumptions – New Benchmark Report Reveals Data to Improve Indirect Lending

by Bill Meyer

With the 2016 Government Affairs Conference (GAC) in Washington D.C. as the backdrop, CU Direct unveiled the industry’s first benchmark report focused on indirect lending. The highly anticipated monthly report provides CU Direct’s partner credit unions with exclusive insight and data to compare/contrast with other marketplace lenders, to help improve overall indirect lending performance.

The difference is in the data.  For the first time, credit unions can truly assess their performance in the indirect arena. The report, which utilizes credit union application performance data from CU Direct’s CUDL Lending Platform, helps credit unions gauge their independent performance on a very granular level, to better understand how they can be more competitive in the marketplace.

The report offers credit unions a dynamic perspective on indirect lending application trends on a number of levels, including national, state and peer to peer. The big advantage here is that with this data in hand, credit unions no longer need to make any “blind assumptions” about local, state or national indirect markets among credit unions.

One such blind assumption may be that your credit union has a competitive indirect rate. However, this comprehensive report gives a unique, deep-drill perspective that may provide reason to adjust your rate and, as a result, optimize your profitability.

The report provides effective and accurate performance measures for credit unions in a number of key areas:

  • Book-to-Look Ratio
  • Book-to-Approved Ratio
  • Origination Metrics & Average Annual Percentage Rate (APR)
  • Funding Trends

Your credit union knows how fast it turns a loan around, and you may be ok with that level of performance. But do you know how your credit union performs versus your competitors?

Turnaround time is playing an increasingly crucial role in dealer decisions when it comes to who they send their business to. Now, with this report, credit unions also gain an awareness of what the marketplace considers as “fast” and “slow” turnaround, and make adjustments to help ensure they’re getting a lion’s share of loans.

Credit unions interested in receiving CU Direct’s monthly Indirect Lending Benchmark Report can contact Michael Cochrum at [email protected].

About the Author

Bill Meyer
Bill Meyer is the PR and Corporate Communications Lead for CU Direct.