CU Direct Drive 18 Coverage: With Volume Up, Mortgage Solution is Next

GRAPEVINE, Texas–Lending by credit unions on CU Direct’s loan platforms is up 20% to date in 2018, and the company is preparing to roll out several other initiatives, including a mortgage platform.


Tony Boutelle

In remarks to the company’s Drive 18 meeting here, CEO Tony Boutelle offered an update on the company’s performance and what lies ahead, including a new stock offering for credit unions that have signed on with CU Direct since 2014, “as we want to make sure this is an inclusive CUSO.”

Boutelle said CU Direct funded $39 million in loans in 2017, up 17% from 2016. Lending among its credit unions is up by another 20% this year he said, hitting its highest point in the company’s 24-year history. He noted in auto lending CU Direct is the leading lender in the country, ahead of Ally and Capital One.

“What’s important about our business model is we control our delivery channel,” said Boutelle. “When you do that you control the member experience and your pricing. As we have expanded our platform, in every single situation the credit unions who come on have lower costs and members have a better experience. We’re now working with 14,500 dealers.”

For CU Direct credit unions, auto loans make up 34% of their total loan portfolios, about where it was in 2010, he said. “Indirect loans are growing, but delinquencies are falling a bit, at .72% in 2017,” he said.

Four Things to Keep in Mind

Boutelle said CU Direct strives to keep four things in mind:

  • Connect credit unions to more loan and member opportunities
  • Deliver solutions that increase efficiency
  • Create a better user experience
  • Protect members and generate fee income

Through the company’s Innovation Lab, Boutelle said it is now working on building out a new multi-product member loan portal that will accept digital loan applications from anywhere, including its own assets, such as OnSpot and Intuvo, as well as other organizations, such as LendingTree, Trulia and Zillow.

“We think this will create a better member experience and efficiencies for you,” said Boutelle.

Overall, the Innovation Lab is also focused on building out an autonomous loan process, AI loan decisioning and portfolio management, along with the next-generation member portal.

“We don’t want to have so much of the stare and compare that is happening today, and think this has some big possibilities to improve 25% to 50% of your costs in processing loans,” Boutelle said of the autonomous loan processing it is working on.

He also said the company in 2019 will introduce a mortgage lending solution.

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Copyright Year: 2019
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