Open Lending, an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, has released its 2024 Vehicle Accessibility Report. This report illustrates how traditional underwriting practices have alienated and excluded many creditworthy near- and non-prime consumers, providing insights to help automotive lenders offer reasonable loan opportunities to borrowers in this underserved but deserving credit segment.

With barriers to vehicle affordability remaining higher than ever, the report findings show that while near- and non-prime consumers are confident in their financial futures, they are careful about debt and wary of the lending process. Though members of this segment report high interest in making vehicle purchases, many doubt their ability to secure an acceptable loan or find it difficult to trust a lender. This represents an opportunity for banks, credit unions and captive finance companies to improve long-term profitability by building trust with this excluded market through personalized financing opportunities.

“Many of today’s near- and non-prime consumers are the prime borrowers of the future. Overlooking creditworthy loan applicants in this segment stalls upward mobility and puts the automotive industry at risk.” said Matt Roe, Chief Revenue Officer at Open Lending. “To stop these consumers from being pushed out of the market altogether, automotive lenders must offer accurately priced loans that applicants can accept. AI, alternative data and predictive analytics make this possible. By capturing a more detailed image of an applicant’s creditworthiness, lenders can offer reasonable loans to near- and non-prime consumers while prioritizing portfolio performance and risk management.”

Using survey results from 1,042 U.S.-based consumers who fall within either the near-prime (620-659) or non-prime (580-619) credit tier, key findings from the report include:

• Near- and non-prime consumers are proactive about managing debt, have purchase intentions and maintain a positive outlook on their financial futures. Sixty-nine percent of near- and non-prime car owners plan to pay off their loans early. Nearly three-quarters (74%) expect their financial situation to improve over the next year, and 63% plan to purchase or trade in a vehicle within two years.
• Due to decreased affordability and low transparency, near- and non-prime consumers are buying more used vehicles outright or seeking alternate routes to car ownership. Of the nearly one-third (32%) of respondents who purchased their vehicle outright, 38% did so to avoid debt, and 21% sought to forgo costly monthly payments and fees. Nearly half (48%) view securing the right interest rate as the most confusing or unclear part of the automotive lending process.
• Near- and non-prime consumers feel the sting of lenders’ focus on credit scores. For some, this makes it hard to trust lending providers. Nearly half (48%) of near- and non-prime consumers do not fully trust financial institutions to offer honest, reasonable terms on automotive loans, with some reporting they have experienced bias in the lending process.
• Gen Z near- and non-prime consumers are financially cautious, hesitant to take on unfavorable loan terms and quicker to purchase a car outright. Sixty-one percent of car-owner respondents aged 18-42 have a loan term limit of 48 months or less, compared to just 42% of those aged 43-68. Meanwhile, of the Gen Z respondents who purchased their vehicles outright, 22% did so because they were unsatisfied with the loan rate or repayment terms offered to them.

Open Lending has focused on the near- and non-prime consumer for over two decades, culminating in deep expertise and experience in this segment’s challenges and opportunities. Many near- and non-prime consumers are creditworthy but overlooked by lenders, creating a missed opportunity for financial institutions and deserving borrowers. Through research and analysis, the company aims to empower automotive lenders to serve more consumers while growing return on assets and achieving yield targets.

Access the full 2024 Vehicle Accessibility Report here.
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To learn more about Open Lending, visit openlending.com, or visit our booth #133 at the Credit Union National Association’s annual Governmental Affairs Conference in Washington, D.C. between March 3-7, 2024.

Credit Union Leasing of America (CULA) experienced double-digit growth in its portfolio, credit union and dealer partners in 2023, even in the face of a challenging auto finance environment, the company announced today. CULA drove 24% growth in credit union partnerships year-over-year, with four of those additions driving expansion into multiple states.

In addition, the Company grew active dealers 17%, adding 274 new dealers to the program. CULA now offers vehicle leasing through credit unions in 23 states and more than 40 credit unions are currently active on CULA’s innovative leasing platform.

“While vehicle prices have been trending down, the average transaction price remains $6500 higher than in January 2021 according to Kelly Blue Book(1),” said Ken Sopp, President of CULA. “High prices, coupled with an elevated interest rate environment, continues to make it challenging for consumers to afford cars, which is why leasing remains a strong option for credit unions to offer members in the market for a new or used vehicle – and why we expect to see continued growth in 2024.”

According to CULA’s January 2024 “Future of Auto Finance” survey, nearly 60% of credit union professionals say they believe vehicle leasing would be a positive addition to their finance portfolio in 2024 – data that is borne out by the uptick in new vehicle leasing reported by Experian: from 21.15% in 2022 to 27.37% in 2023.(2)

Sopp also noted that the growth CULA has seen in its dealer partnerships is something they expect to continue in 2024. In fact, over 70% of credit unions in the CULA survey reported that they plan to deepen/increase those relationships in 2024. “Dealer partnerships have been core to a credit union leasing program’s success and it makes sense as it offers dealerships yet another financing option for its customers.”

“Vehicle leasing enables dealers and credit unions to provide relief from the high price of vehicles to their members, as well as term flexibility, without the risks of longer-term loans,” continued Sopp. “Leasing has, quite simply, become a necessary portfolio offering to help credit unions remain competitive in the current environment – and for the long term.”

According to Vince Nowicki, Chief Lending Officer of Mission Federal Credit Union in San Diego, California, a CULA partner since 2018: "Since we have partnered with CULA on vehicle leasing, we have been able to open up an important, more affordable alternative to help our members get into a vehicle without taking on an extended loan. And the benefits to us, in addition to helping our members, are higher yield, greater portfolio diversity and staying relevant with our members’ preferences, as well as being able to rely on CULA to navigate the back-end complexities of leasing for us so we can focus on member service. Offering a lease product was a new strategy for Mission Federal. We were fortunate to have partnered with CULA who helped us every step of the way.”

CULA has been the leader in indirect vehicle leasing for credit unions for over 35 years. Its innovative leasing program is analytically driven, high-value and handles all the intricacies of leasing for its clients – including insurance, operations, compliance and more. CULA’s understanding of the credit union financial model has resulted in long-term business relationships with top-tier credit unions, including nine of the top 10 credit unions offering leasing in the U.S. The program enables credit unions to easily add leasing to their portfolios and dealers to offer their customers more finance options, especially as affordability becomes their main concern.

(1) https://www.kbb.com/car-advice/when-will-car-prices-drop/#link1
(2) ttps://news.cuna.org/articles/123161-vehicle-loan-terms-decrease-as-interest-rates-rise

In the Cellar is thrilled to announce the distinguished slate of credit union leaders dedicating their time and talents to serve the 2024 Board of Directors. This year’s board comprises a dynamic group of philanthropic leaders committed to advancing the mission of In the Cellar in partnership with Credit Unions for Kids.
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Chaired by Tansley Stearns, President & CEO of Community Financial Credit Union out of Plymouth, MI, the 2024 Board of Directors brings together respected leaders from across the Great Lakes, each bringing their unique expertise and shared passion to make a difference in the lives of children in their communities. Together, they will ensure In the Cellar solidifies its place as a marquee event for Credit Unions for Kids in the Midwest.

“I am honored to walk beside this group of leaders,” said Tansley Stearns, Board Chair. “With their dedication and support, we are ensuring In the Cellar is set to deliver a lasting legacy for the kiddos and we will continue to watch that ripple grow.”

Members of the Board are:

• Vice Chair Tom Kane, President & CEO of Envisant
• Secretary Elry Armaza, chief of staff at Community Financial Credit Union
• Treasurer Beth Schnabel, director of strategic events at Community Financial Credit Union
• Director Brad Bergmooser, President & CEO at Financial Plus Credit Union
• Director Laurie Butz, President & CEO at Capital Credit Union
• Director Jason Osterhage, CEO at Everwise Credit Union
• Associate Board Member, Tammy Williams, VP of Culture and Learning & Development at Capital Credit Union

Hosted on Friday, September 22, 2023 at the Henry Ford Museum in Detroit, MI, In the Cellar came to life and started a ripple across the Great Lakes. Dressed in their best, over 300 credit union leaders gathered and brought the credit union mission to life through their generosity and giving spirit and helped make credit union history! In the Cellar has solidified its place as a top five fundraiser for CU4Kids and first signature event in the Midwest. Setting a first-year fundraising record for CU4Kids, the inaugural event brought it over $900,000.

“We invite the credit union community to raise their hand and join us on Friday, September 20, 2024, as we come together to make a difference in the lives of children and their families,” adds Stearns. “With the support of the Board of Directors and our generous partners, I know we have the power to bring impossible dreams to life and provide important resources for mental health programs for the children across our Great Lakes communities and beyond.”

This year’s event will be hosted at Chicago’s historic Union Station and promises to surprise and delight each guest with an unforgettable evening featuring great wine, incredible food, live entertainment, all surrounded by good friends in support of an incredible cause. Each dollar that is raised through CU4Kids helps improve the health of kids and allow them the opportunity to grow to their full potential. And they couldn’t do it without the support from the generosity of community partners, like credit unions.

Through these donations, CMN Hospitals like Helen DeVos Children’s Hospital of Grand Rapids can provide treatments and support patients desperately need today, so that they can fulfill their potential for tomorrow. “Credit Unions have had huge impacts on kids like Braylen and Rylee, who were born prematurely, and needed occupational and speech therapies.  Braylen and Rylee have overcome their health challenges through vital treatments and therapies funded by our local credit unions, through Children’s Miracle Network Hospitals.  Through the generosity of our Credit Unions 4 Kids partners, advancements are being made every day to change kids’ health to change the future,” stated Charlotte Alex, Director at Corewell Health, Helen DeVos Children’s.

To learn more about this year’s event and to learn how you can get involved, please visit www.inthecellar.org or contact Beth Schnabel at [email protected].

Credit unions have been proud partners of CMN Hospitals through CU4Kids since 1996 and have raised more than $200 million locally for children’s hospitals across the United States and Canada.

When we improve the health of all children and allow them the opportunity to reach their full potential, we also improve our communities for years to come. Whether you’re contributing through ATM contributions, events or making a direct donation to CU4Kids, you are creating ripple effects felt in our community for years to come. When we change kids’ health, we change the future – for all of us.

Zest AI, the leader in AI lending technology, is unveiling its new lending intelligence companion today, LuLu. LuLu is a customized generative AI tool that lending organizations can use to instantly capture strategic industry insights, decisioning and portfolio performance metrics, and quickly access their unique Zest AI product knowledge base. 
 
“We’ve always believed in the transformative power of AI, but the evolution of large language models got us thinking about how to leverage this innovation to better serve lenders,” said Adam Kleinman, Head of Strategy and Client Success at Zest AI. “Right now, access to lending analysis is complicated, time-consuming, and often cost-prohibitive, which is why LuLu is a game-changer. The ability to ask a generative AI tool a lending question in human language and get an accurate, customized answer within seconds gives our clients the visibility, speed, agility, and intelligence to empower teams to optimize performance with confidence.”

LuLu can quickly connect lending teams with industry data that allows them to analyze performance benchmarks, harvest insights from their Zest AI business results, and access critical information from their internal reports and documents – all with simple, natural human language prompts. 

“As a long-time customer of Zest AI, I couldn’t be more excited about LuLu,” said Jenny Vipperman, President and CEO of ORNL Federal Credit Union. “LuLu’s ability to provide quick and accurate answers to complex business questions allows us to accelerate important decisions. The capability of combining industry data with our own proprietary datasets will enable us to be more agile and ultimately, provide better service to our members.”

This technology allows lending stakeholders to capture a 360 degree view of their business. Armed with a diverse array of data inputs, LuLu can instantly answer questions like, “How does my approval rate look over time?” or, “What are the top changes I can make to increase automation?” At the same time, LuLu maintains robust data integrity and compliance-related controls that are built into all Zest AI products and services. 

LuLu is currently being piloted by select Zest AI credit union customers, including ORNL Federal Credit Union and HawaiiUSA Federal Credit Union with a general release of the product expected by the end of the year. ​

The National Association of Credit Union Service Organizations, Inc. (NACUSO) is thrilled to express its sincere gratitude to BenefisCU for their remarkable contribution of $21,000 to NACUSO’s Advocacy Fund. This generous donation will play a vital role in supporting our ongoing efforts to advocate for credit unions and their members on Capitol Hill and beyond.

Ronaldo Hardy, CEO of NACUSO, said, “We are particularly honored to be the first beneficiary of BenefisCU's innovative program to donate a portion of their profits back to the industry they serve. The BenefisCU Industry Advancement Fund was created with a commitment to collaboration, and giving back reflects the core values that make credit unions and CUSOs so special”.

As Brian Lauer, NACUSO's General Counsel, states, "BenefisCU's contribution will directly enable us to strengthen our advocacy efforts on key issues such as regulatory reform, data security, and access to affordable financial services. Their support is invaluable in helping us ensure a brighter future for credit unions and their members."

Kerry Wahlen, Board Chair of BenefisCU powered by TriscendNP and CEO of Goldenwest Credit Union, said, “Our investment in BenefisCU has not only provided value to our credit union but has created a collaboration between multiple credit unions to be able to help support the NACUSO Advocacy Fund to this level, helps further that goal of industry advancement.”

NACUSO extends their heartfelt thanks to Dale Edwards, Alexandria Staron, the BenefisCU staff, and their board of directors for their leadership and vision in making this impactful contribution possible. NACUSO is proud to partner with organizations like BenefisCU who share their commitment to supporting the credit union industry. Their generosity inspires us to continue our advocacy work with even greater dedication.
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Click here to learn more about NACUSO's Advocacy Fund or to make a contribution.
Together, we can make a difference for credit unions and their members!

Leading digital banking provider, Bankjoy has announced its inaugural client conference, Elevate 2024 will be held April 17-19 in Napa, California at the Silverado Resort. Elevate 2024 will offer financial institution leaders an opportunity to network with fellow Bankjoy clients, gain an exclusive first look at the company’s latest product innovations and uncover ways to maximize growth using Bankjoy’s award-winning digital banking platform.
 
Elevate features a thoughtfully-curated agenda with multiple client panels, expert-led breakout sessions and interactive discussions designed to address emerging trends that are top-of-mind for today’s bank and credit union leaders. Throughout the conference, attendees will hear from renowned industry experts and their peers on the latest developments in financial services and digital banking, as well as best practices for growing deposits, proven tactics to enhance fraud prevention, and much more.
 
Select agenda sessions include:

• Special Guest Keynote: Growing Deposits in Today’s Economy - Presented by Mark Weber, Strum CEO
• Advanced Fraud Defense: Safeguarding Clients in the Digital Age - Presented by Weiwei Duncan, Bankjoy Founder & COO and Brent VanderMeide, Bankjoy Director of Platform
• Solving the Deposit Dilemma: Strategies for Growth - Led by Bankjoy’s CEO, Mike Duncan; along with client panelists, Casey Bacon, CEO of Statewide Credit Union; Margaret Neiter, CIO of CommunityWide Federal Credit Union; and Ned Palmer, COO of Panacea Financial
• Introducing JoyCompass: A New Era In Financial Empowerment - Presented by Weiwei Duncan
• Empowering Local Businesses: A Panel with Impact - a panel discussion featuring Bryan Bast, Principal Vice President of Lafayette Federal Credit Union;  Traoney Harris, EVP and COO of Live Life FCU; and Bankjoy’s Senior Sales Engineer, David Slaughter
• Hear How Sub-Brands Are Helping to Drive Growth at Leading FIs - a panel discussion featuring Travis Bow, CEO of University of Hawaii Federal Credit Union and Adam Brown, CEO of Advantage Plus Federal Credit Union
• And much more.

 
The client conference also features several interactive activities each day, including a friendly round of golf and a wine tasting tour of Napa Valley. In addition to the jam-packed agenda, Elevate will present valuable networking opportunities for Bankjoy’s client base of bank and credit union executives. The conference will feature multiple forums for attendees to learn from like-minded peers, exchange timely perspectives and gain valuable insights to support informed strategic planning. Attendees can also engage with Bankjoy’s trusted partners and discover new ways to further elevate the digital banking experience for their customers and members.
 
“Our team at Bankjoy is proud to serve such an engaged, innovative group of financial institutions and our client base has grown significantly over the last few years,” said Michael Duncan, CEO of Bankjoy. “Elevate 2024 presents an exclusive forum to cultivate even deeper relationships with our growing client base and explore the trends shaping the future of banking and finance. We expect a strong turnout and our agenda is sure to spur productive discussions among bank and credit union leaders as they plan for the year ahead.”
 
To register and view the full agenda for the event, visit: elevate.bankjoy.com

Members First Credit Union (M1) and its team members participated in United Way’s annual charitable giving campaign by donating to seven United Way organizations across Michigan. Nearly 100 M1 team members pledged $11,535 to United Way, and the amount was proudly matched by M1 for a total pledge of $23,070.

“Though I am not surprised, I am incredibly proud of our team’s radical generosity! They collaborated to wholeheartedly participate in United Way’s annual campaign,” says M1’s Chief Executive Officer Carrie Iafrate. “This was one of the largest contributions we have ever pledged. We know our gift brings hope to so many neighbors in the communities we serve.”

The seven Michigan United Way organizations are:

• Heart of West Michigan United Way
• Mecosta and Osceola Counties United Way
• United Way of Bay County
• United Way of Clare and Gladwin Counties
• United Way of Gratiot and Isabella Counties
• United Way of Midland County
• United Way of Saginaw County

“We’re so grateful for our partnership with Members First,” shared Andrea Plouff, Relationship Manager at United Way of Midland County. “Their commitment to supporting the community is incredible and shows their caring spirit. Through their generous donations to the credit union's workplace campaign, Members First employees have made a significant impact on the lives of many. These contributions provide vital support for community programs offered by our partner agencies. Because of their support, parents can afford groceries, families have safe and affordable housing, and teenagers have access to mental health care – and these are just a few examples.”

​Mahalo Banking, a pioneering Credit Union Service Organization (CUSO) revolutionizing online and mobile banking solutions for credit unions, proudly welcomes Charles Rodriguez as its newest Sales Executive. With an illustrious career spanning over two decades in fintech, Rodriguez joins Mahalo with a fervent belief in the transformative power of cutting-edge technology to reshape the credit union landscape.
 
Rodriguez said, "Mahalo's unwavering commitment to innovation and the transformative impact of its technology on the credit union industry are truly inspiring. The advanced solutions Mahalo offers are compelling, empowering credit unions with the tools they need to succeed in today's digital era. I am excited to be part of a team that is known for its deep dedication to driving positive change and delivering value to credit unions and their members."
 
"We are thrilled to welcome Charles to our team, especially at this pivotal moment in Mahalo's explosive growth," said Jim Stickley, President and CEO of Mahalo. "His wealth of experience and deep understanding of the credit union industry make him an invaluable addition to our team. As Mahalo continues to expand, it is crucial to ensure our credit union partners receive the dedicated attention necessary to foster long-term relationships. Charles' appointment strengthens our commitment to providing innovative solutions and exceptional service to credit unions."
 
Mahalo Banking's innovative platform offers a unified, secure and user-friendly experience, bridging credit unions with their members through intuitive features. Distinguished as the first provider to fully integrate comprehensive neurodiverse functionality into its platform, Mahalo promotes inclusivity among credit union members. The platform's seamless integration with credit union cores enables real-time data syncing, streamlining operations and fostering collaboration for a cohesive member experience. Additionally, Mahalo's recent introduction of Credential Assurance Technology (CAT) bolsters fraud protection measures, fortifying credit unions and their members against credential stuffing attacks.
 
Mahalo Banking continues to lead in revolutionizing the credit union industry, empowering credit unions with innovative solutions. With this latest appointment of Charles Rodriguez, Mahalo continues to build on its commitment to excellence and service for credit unions nationwide.