Sound Credit Union’s Auto Loan Yield Jumped 8% After Implementing Open Lending’s Lenders Protection™, Case Study Finds
May 05 2023 - 8:15AM
Business Wire
Automated decisioning, advanced risk analytics
help credit union increase auto loan volume and build community
focus following a smooth six-week implementation
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230505005085/en/
Alison Smith for Open Lending openlending@ink-co.com Investor
Relations Inquiries openlending@icrinc.com
Open Lending (NASDAQ:LPRO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Open Lending (NASDAQ:LPRO)
Historical Stock Chart
From Jul 2023 to Jul 2024