MAX Credit Union Overcomes Local Credit Risks and Improves ROA with Lenders Protection

When Montgomery, Alabama-based MAX Credit Union realized its near- and non-prime members were taking out loans from other financial service providers at higher interest rates, they knew they had to do something to better serve their members — and improve the credit union’s bottom line.

Senior Vice President of Customer Lending Wendy Anderson wanted to find a secure way to provide auto lending services to near- and non-prime members who had long histories with the credit union. “Unfortunately, we saw them going to other lenders at much higher rates, and we just didn’t feel comfortable with that,” Anderson said.

MAX Credit Union’s lending team identified Lenders Protection as the best program to help them offer loans to members with lower credit scores and provide better indirect loan options to the credit union’s 100 preferred dealerships. 

“We’ve seen Lenders Protection work for our dealers, and we’ve seen the program work for us,” Anderson said. “We’ve definitely achieved the return on assets we’d like to get […] but more importantly, we’ve really seen the benefit that it’s given to our customers by getting them into the vehicles they need and want at affordable rates.”

Thanks to Lenders Protection’s AI-powered risk analysis, fully automated decisioning and built-in default insurance, MAX Credit Union can now serve its near- and non-prime members without added risk. Despite Alabama ranking fifth in the nation for late auto loan payments, MAX Credit Union’s ROA sits well above the national average.

MAX Credit Union leaders can clearly see the benefits of its partnership with Open Lending, Anderson said. It’s been a win-win-win for the credit union, its dealership partners and its members.

To learn how Lenders Protection can help your financial institution overcome lending obstacles and drive portfolio growth, schedule a demo today.