ONTARIO, Calif.–As CUToday.info was first to report here, CU Direct is reporting that credit unions on its loan platform collectively have become the second largest auto financing source in the nation, surpassing Ally Bank. In aggregate, the more than 1,000 credit unions using CU Direct’s CUDL Lending Platform have been the nation’s third largest financing source the previous two years, the company said.
“Our goal has always been to help our partner credit unions and auto dealers create efficiencies and grow their overall market share,” explained Tony Boutelle, president and CEO of CU Direct. “We are proud to provide solutions that achieve these objectives for our credit unions, as illustrated by this most recent data. CU Direct remains dedicated to developing and improving technology solutions that drive our credit unions’ lending business and enable auto dealers to grow their bottom lines and cultivate customers for life. We could not be more excited for everyone who has contributed to this success.”
CU Direct said that consumers are turning more toward credit unions as a trusted source of auto loan financing, and further noted that auto lending makes up one third of credit unions’ total loan portfolio. Credit unions as a whole continue to be a major force in the auto lending space, holding 22% of market share, according to AutoCount, the company added.
According to CU Direct, CUs on its CUDL Platform are experiencing the highest loan origination growth rate (15.4%) of any auto lender among the top nine lenders in the nation, according to data from AutoCount, and CU Direct.
The company’s CUDL platform connects credit unions to more than 13,000 auto dealerships across the country.