Union Square CU Sees Margins Improve 150 bps with Open Lending

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For many people, buying a car has gotten a lot more difficult in recent years. Interest rates are up, automobile inventory is still recovering from supply chain disruptions caused by the pandemic. Community banks and credit unions have a mission to support their members through loans, but must do so while balancing risk. 

To better support its members, Union Square Credit Union in Wichita Falls, Texas, implemented Open Lending’s Lenders Protection™ program in 2020. 

The $478.5 million credit union chose Open Lending because it wanted to reach potential members with imperfect credit. With AI-powered risk analysis, fully automated decisioning, and built-in default insurance, Lenders Protection™ made it possible to securely engage local folks in need of auto loans.

“When our local community can go to a local dealership and know that they’ve gotten a loan through Union Square, that provides peace of mind for the customer that their lender is local,” said Union Square Credit Union Assistant Vice President of Dealer Finance Adam Case. “And we’re happy to serve them in that way.”

Union Square’s results speak for themselves. Since implementing Lenders Protection™, Union Square’s auto loan portfolio has increased by 21%. The partnership has increased the credit union’s auto lending portfolio by $18.3 million over the past year, and its margins have grown by 150 basis points. 

The program has also helped Union Square to mitigate delinquency, strengthening the credit union’s dealer partnerships. 

Open Lending built its Lenders Protection™ program to help financial institutions, dealers, and borrowers in times like these. With backing from A-rated insurers, our solution helps auto lenders build balanced, resilient portfolios and support underserved consumers when they need it most.

If you’d like to boost your auto lending volume and profitability like Union Square, schedule a demo today.


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