CUNA Strategic Services has selected Proforma Fund as its newest alliance provider. Leveraging data analytics, Proforma empowers credit unions to earn significantly higher yield while capturing a greater share of the market for newer auto loans among just-below-prime borrowers.
“We love the fact that this new alliance helps make it possible for less-than-prime consumers to get into a car and a credit union simultaneously. This will not only improve member credit but provide access to financial education opportunities and member-centric products offered by credit unions. This alliance ties perfectly to our focus on financial well-being for all, and we’re super excited to launch!” said Barb Lowman, President of CSS.
A team of credit union experts and lifelong entrepreneurs founded Proforma Fund to address the gap in the marketplace. The company partners with credit unions and dealers in specific markets to lessen the risk of indirect auto loans, allowing credit unions to strengthen their portfolios, improve their yield and attract new members by offering loans to a traditionally underserved market. As an end-to-end solution, Proforma assumes responsibility for all loan origination and dealer fees, loan servicing and comprehensive risk management including the repurchase of any troubled loan at full value while its clients earn well above peer yield.
“We are deeply committed to credit unions, their mission and the communities they serve. As an important tool in a credit union’s utility belt, we are proud to align with CSS to enable these institutions to boost their yield and optimize member benefits through what used to be a credit union-leaning auto loan market.” said CEO/Co-Founder Kirk Bowman.
“Years ago, when indirect lending made up a small percentage of car loans, a narrative developed that indirect lending should be avoided if possible, especially in the less than prime space.” Bowman said, “However, now that we know nearly 9 of 10 borrowers in your community are securing loans at a dealership, why shouldn’t credit unions be there? And not just there, but the BEST ones there? Why should credit unions, as our communities’ best advocates, surrender this new reality to predatory national lenders?”
To learn more, credit unions can visit the website of CUNA Strategic Services.