Inward and Upward: Driving Member Growth and Financial Health with Auto ReFi

After years of turbulence, the auto lending market is finally leveling out–and credit unions are primed to capitalize. In the latest 22 Minutes in Lending we talk to Eric Stradley, president of auto refinancing fintech Caribou, about the growth opportunity for credit unions, and the potential positives for millions of consumers.Key takeaways:00.56: The organization’s initial vision to enhance credit unions’ reach and impact through an innovative marketplace.02.49: An overview of the auto refinance market and the potential financial benefits for millions of consumers.03.55: The nuances of auto refinancing vs. traditional mortgage refinancing–namely how credit typically improves during the duration of an auto loan.05.30: The vast majority of auto loans being refinanced were not originated by a credit union, but instead are an opportunity to win market share from bigger banks.06.57: How the turbulence of loan-to-value ratios has skewed underwriting and lending over the last few years, and what the future holds for credit unions.09.09: A major portion of credit unions took a step back from auto lending in the early 2020s but are using refinancing as a lower risk re-entry strategy.11.09: An overview of the Caribou process–how it works for consumers and credit unions, and why that’s a benefit for both parties.14.02: The shifting picture of typical FICO scores for auto refinancing, and how credit unions can reach and engage members that they wouldn’t typically take a risk on.16.53: Auto refinancing provides non-prime members for prime risk, and helps credit unions support members on their upward credit trajectory.17.48: Caribou is essentially national, and is looking for credit union partners to meet consumer demand.19.50: This isn’t about replacing existing credit union services; it’s about augmenting them at a larger scale, reaching potentially millions of more consumers.Resources Mentioned:www.caribou.com Caribouwww.qedinvestors.com QED Investorsus.dealertrack.com Dealertrack Insurance productThanks for listening to the 22 Minutes in Lending podcast. If you enjoyed this episode, please leave a 5-star review to help get the word out about the show and be sure to subscribe so you never miss another insightful conversation.#CreditUnions #AutoLending #GrowthMarketing

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