Money to Lend
The coronavirus pandemic has caused many Americans to evaluate their finances and spending habits. Credit unions are seeing a surge in deposits as economic uncertainty combined with government issued payments has resulted in a dramatic increase of member savings accounts and decrease of revolving debt.
Member savings accounts are likely to remain at elevated levels post pandemic due to the food and fuel savings of remote work and lingering concerns of Covid-19 variants, so it is important that credit unions find ways to utilize their influx of funds to generate income.
Government backed investments offer low risk, but also low returns. These can be beneficial in times when rates and deposit accounts are volatile, but are not as favorable when rates are low and credit unions are flush with cash.
Mortgage loans and refinances tie up a substantial amount of loan dollars and, at a time when mortgage rates have been trending down, will be locking your credit union into a low interest rate for up to 30 years, making them a poor choice for profitability.
Auto loans offer the most advantages for credit unions looking to use their increased liquidity to generate revenue as they produce good yields at shorter terms which reduces interest rate risk. Auto loans can be hard to come by amid the national inventory shortage we are facing, so it is important to build relationships with dealerships through indirect lending. The right indirect lending program will generate an increase in auto loans and new member acquisitions, providing your credit union with the opportunity to convert these new members to other products and services, generating more sources of income and portfolio diversity.
The indirect auto loan market can be competitive with many credit unions and banks fighting for profit share. Instead of devoting a large amount of time and resources to build a program and fight for loans, choose a turnkey program and partner with Keystone Lending Alliance. Our team of indirect auto lending experts and superior technology provides huge efficiencies for credit unions by eliminating redundancy of staffing, hardware, as well as brick and mortar. Click here to learn more about the benefits of credit union partnership. About Us: Keystone Lending Alliance has been assisting credit unions with indirect lending since 2008. We offer a customizable turnkey program for credit unions with an array of products and services to fit your credit union’s needs. We have established relationships with dealerships throughout Pennsylvania and perform due diligence and risk mitigation to ensure your credit union grows at a responsible pace with good performing auto loans. If you would like to learn more about our proven credit union solutions, give us a call at 724-934-3394. Our management team would love to discuss these options with you to see if they would be a good fit for your credit union.
Keystone Lending Alliance, LLC
6021 Wallace Road Ext. Suite 100
Wexford, PA 15090
724-934-3394 (p) | 724-934-3389 (f)