IRVINE, Calif.– Origence, a CU Direct brand, said it has entered into a partnership with LoanStar Technologies to provide retail merchant financing to credit unions.
As a result of the partnership, LoanStar will provide Origence credit unions with “vital B2B support” to connect with merchants, which has “historically been a challenge for credit unions,” the company said.
“Through this new partnership, credit unions will have the ability to capture loans at the point of sale, when and where members make large purchases,” Origence added.
According to Origence, through its MerchantLinQ portal, LoanStar provides a “world-class system that is fully branded for its credit unions. The company offers a wide range of flexible and competitive financing options, and provides consultation on how to win market-share.”
Most notably, the company added, LoanStar provides crucial business development support to help ensure lender success.
“We are excited to partner with such a well-known organization like Origence to help their lending partners diversify their portfolios while offering their members a new ability to borrow at the point-of-sale,” said Andrew Turner, CEO of LoanStar.
‘Next Evolution’
Added Brian Hendricks, chief product officer for CU Direct, “As we continue to explore new ways to reach and serve credit unions and their members, we are excited to announce the next evolution in point-of-sale financing through our collaboration with LoanStar.”
As part of the joint venture, the company said CU Direct Connect (CUDC), a subsidiary of CU Direct, will be LoanStar’s exclusive provider of BPO services, providing outsourced processing and underwriting services for retail merchant financing.
CUDC provides lenders with flexible outsourced lending solutions that meet shifting demands, complement existing capabilities, and redirect resources to pursue new opportunities for loan growth, Origence added.
‘Critical for Success’
“The business development and product aspects are critical for credit unions to succeed in this market,” said CUDC President Brian Hamilton. “Beyond that, however, it is a high-transaction business that requires responsiveness and coverage outside of standard business hours. We look forward to enabling credit unions to grow through this channel without needing to invest heavily in their own back-office operation
expertise.”
For info: www.cudirectconnect.com.