The Indirect Lending Challenge

We were recently included in an article in the CU Journal about membership growth. The article was written by Jackie Stewart, and during the interview process we had good discussion regarding the link between membership growth and indirect auto lending. Like it or not, for man credit unions the indirect channel is a primary growth driver, not only for loans but for membership – and that was one of our main talking points.

For those interested in a little more detail, we’ve published two data charts below each focused on indirect loans. The first illustrates growth in total indirect auto loans, the second growth in total portfolio dollars. The numbers don’t look good.

Going forward it will be interesting to see if there is a rebound in auto lending resulting from consumer disinterest in mass public transportation – and whether that growth will, in turn, drive credit union membership growth.

Image by Peter H from Pixabay

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