CENTENNIAL, Colo. — Coming off a strong first half, CU Direct Connect (CUDC) says it expects application volume and funded deals among its participating credit unions to grow with the introduction of a proprietary technology called “The Opportunity Pool.” It is designed to enables credit unions to fund more auto loans based on their pre-set criteria.
Through June 30, 2013, CUDC’s application volume is up 20 percent over the prior year same period, the company reports. Year to date, CUDC’s funding volume is up 23 percent and its member/shareholder equity increased at an annualized rate of 13 percent in the first six months of the year.
“We are proud of the continued growth and value creation that we are bringing to our participating credit unions, their members and to our auto dealer partners,” said Blair Korschun, CUDC’s president/CEO. “We expect to see strong growth continue in the second half of the year based on our improving market share and from new innovations like the Opportunity Pool that we are bringing to the market.”
In June, CUDC introduced a new approach to what is known in the lending industry as a “Turn-down, pass-through program,” which Darren Lorentz, CIO, said creates a forum for credit unions to pick out deals they fit their criteria.
“With numerous credit unions in the CUDC program, there is a good chance that one might issue an approval where another issued a denial,” he said. “Our new Opportunity Pool creates the forum so our credit unions can quickly and seamlessly identify and decision previously denied applications. This technology is a win-win for all parties. The feedback from our credit unions and dealers alike has been extremely positive.”
According to the company, market share for credit unions through April stood at 17.2 percent, up from 16.9 percent in the year-ago period. Collectively, credit unions represent the fifth largest auto lender in the market, with more than 225,533 deals funded through April on CUDL’s platform.