Strengthening Your Indirect Lending Program for Tomorrow

Auto lending is evolving at record speed. Consumer expectations are rising, captives are competing fiercely, and instant decisioning is becoming standard. For credit unions, the choice is clear: adapt to stay competitive—or risk falling behind. A stagnant indirect lending program can quietly erode loan growth, weaken dealer relationships, and stall membership expansion.

At KLA, we partner with credit unions to modernize indirect lending strategies and ensure programs are built to compete. Here are four critical areas to evaluate:

1. Are Your Rates and Guidelines Competitive?

Success isn’t just about offering the lowest rate—it’s about aligning pricing and qualification criteria with the needs of today’s diverse borrowers. Competitive analysis, targeted risk segmentation, and flexible tiered structures can boost approvals while protecting margins.

With KLA, credit unions gain access to market intelligence and modeling tools to design dynamic rate tiers that expand approval potential without increasing risk.

2. Are Your Dealer Relationships Driving Business?

Dealers are the frontline of your program. If your credit union isn’t seen as a preferred lending partner, your applications may never make it to the desk. Strong dealer partnerships are built on speed, reliability, and consistent support.

The KLA relationship management team works directly with both dealers and credit unions to ensure quick funding, responsive service, and clear communication—positioning your institution as a trusted, go-to partner.

3. Are You Tracking the Right Metrics?

Improvement starts with measurement. Beyond loan volume, credit unions need visibility into LTV ratios, delinquency patterns, dealer performance, and funding turnaround times to identify strengths and risks.

The KLA reporting platform delivers real-time analytics across critical metrics, including loan quality, dealer performance, and markups—empowering smarter, data-driven decisions.

4. Can Your Program Scale with Growth?

Rising loan volume shouldn’t mean rising complexity. Modern programs need to scale seamlessly without overloading staff or infrastructure. Automation, digital workflows, and shared services make it possible.

KLA offers flexible, scalable solutions—from full-service processing and underwriting to technology integrations, helping you streamline operations while ensuring compliance.

Build a Program Designed for the Future

A modern indirect lending program is more than just a channel for auto loans—it’s a growth engine for member acquisition, non-interest income, and long-term dealer partnerships. Whether you’re rethinking rate strategies, deepening dealer relationships, or scaling for efficiency, KLA can help your credit union compete and thrive in today’s fast-changing lending market.

Interested in hearing more?  Contact Robert Brant at RBrant@kla.us.com for more information.