Business
Sound Credit Union’s Auto Loan Yield Jumped 8% After Implementing Open Lending’s Lenders Protection™, Case Study Finds
Automated decisioning, advanced risk analytics help credit union increase auto loan volume and build community focus following a smooth six-week
About this update from Open Lending Corporation
[{"type":"text","content":"\nAutomated decisioning, advanced risk analytics help credit union increase auto loan volume and build community focus following a smooth six-week implementation\n\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nOpen 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™.\n\n\nSound 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.\n\n\n“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.\n\n\nWith 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.\n\n\n“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.”\n\n\nThe 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.\n\n\nAtoigue also noted how the Lenders Protection platform streamlines the collections process. Wit...