LAS VEGAS, March 31, 2016 / PRNewswire / – PenFed Credit Union (PenFed) has partnered with CU Direct, using the industry’s leading auto loan network for credit unions – the CUDL Network. The PenFed and CU Direct partnership is expected to increase member loans while improving overall efficiency in order to strengthen PenFed’s positioning as a market leader.
Over the past 10 years, credit unions have more than doubled auto loans. The national network of CU Direct automobile dealerships enables credit unions to dramatically increase their ability to attract loans from members and new members. In fact, as a group, CU Direct credit unions, through the CUDL network, have generated $ 26 billion in new auto loans and was the third largest lender in the country in 2015. PenFed seized the opportunity to sign with CU Direct and use the network to launch an indirect lending program.
“The lending landscape is changing and credit unions like PenFed can see the growth potential of auto loans ahead of them,” said Tony Boutell, President and CEO of CU Direct. “Auto loans are driving portfolio growth for many credit unions across the country. We are delighted to partner with PenFed in this effort to bring even more value to car loan programs for their members. “
Beyond the growth in membership and assets, PenFed sees this new partnership as a way to build brand awareness and establish strategic business relationships with car dealerships across the country.
“Growth is a key part of the equation when it comes to PenFed’s ability to consistently provide low-cost funding to its members,” said Jacques Schenck, President and CEO of PenFed. “Joining CU Direct gives us the ability to provide a car buyer with the ability to seamlessly apply for PenFed membership while simultaneously applying for one of our low rate auto loans. “
Tammy Darvish, COO and Executive Vice President of Business Development and Community / Government Affairs at PenFed, said: “The partnership with CU Direct and access to its reseller network provides PenFed with the opportunity to ‘establish a presence in new markets while building brand awareness nationwide. “
With the support of CU Direct’s auto loan network, PenFed Credit Union will provide distinct benefits to both buyers and auto dealers. The CU Direct network will allow PenFed to connect with more than 12,500 dealers across the United States and help increase their membership and loan numbers.
Dealers will also have access to some of the nation’s lowest auto loan rates offered by PenFed, which are passed on to buyers. The result is a win-win situation for PenFed members, the credit union and their reseller partners. In addition, PenFed will offer a unique risk-adjusted pricing approach for new and used auto financing. PenFed does not charge money on a make or model of vehicle, regardless of the year of manufacture. It also doesn’t increase the interest rate based on the car’s model year. Dealers will benefit from this partnership by gaining the ability to incorporate the costs of replacement products into PenFed loans.
About PenFed Credit Union
Founded in 1935 as the War Department Credit Union, PenFed Credit Union is one of the country’s largest credit unions, serving 1.4 million members worldwide; with nearly $ 20 billion in assets. Its long-standing mission has been to provide top quality financial services in a cost effective manner, while being responsive to the needs of members. PenFed Credit Union offers some of the best mortgages, auto loans, credit cards, checks and a wide range of other financial services, always keeping the interests of its members in mind. PenFed Credit Union serves a diverse population and no military service is required to enroll. We offer many membership avenues, including many employee groups and association memberships. It’s easy to apply. We invite you to come and see why you belong to PenFed Credit Union. PenFed Credit Union is federally insured by the NCUA and is an equal housing lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook, and follow us @PenFed on Twitter. Interested in working for PenFed? Find out about us on Linkedin. We are proud to be an equal opportunities employer: M / F / V / D.
About CU Direct
Founded in 1994, CU Direct has helped the credit union industry finance more than 186 billion dollars in loans by being the nation’s leading provider of auto and loan solutions for credit unions. Representing over 1,100 credit unions, CU Direct specializes in technology solutions that help credit unions generate loans, achieve efficiencies and grow membership. CU Direct offers a large and diverse library of products and services designed to help credit unions advance their lending programs and achieve overall portfolio success. For more information about CU Direct and our solutions, visit www.cudirect.com.
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SOURCE CU direct; PenFed Credit Union