Unlocking Growth: How Lending Mojo is Helping Credit Unions Drive Direct Auto Loans and Next-Gen Member Engagement
As the financial landscape continues to evolve, credit unions are increasingly rethinking their approach to auto lending. In recent years, the industry has begun to pull back from indirect lending models, driven by mounting concerns around rising delinquency rates, dealer-influenced fraud, and a growing disconnect between lenders and borrowers. At the heart of this strategic shift is a renewed focus on building direct, high-quality relationships with the next generation of members.
Enter Lending Mojo, a fast-growing fintech platform built to help credit unions tap into the digital used auto loan marketplace while maintaining control, reducing risk, and fostering deeper member engagement.
Moving Beyond Indirect Lending
Indirect lending has long been a staple of auto loan growth for credit unions. But that growth has often come at a cost. Since the relationship typically begins at the dealership rather than within the credit union, borrowers acquired through indirect channels rarely evolve into engaged members. The result? Lower cross-sell potential, higher acquisition costs, and minimal return on member lifetime value.
Moreover, indirect lending programs are becoming increasingly difficult to manage. Dealers are flooding credit unions with unqualified applications, submitting high-FICO borrowers with thin credit files or short credit histories and overwhelming underwriting teams. Underwriters facing pressure to meet dealer demands are often pushed to make exceptions that misalign with institutional credit policies. This has led to poor "look-to-book" ratios, creating operational strain and inconsistent portfolio performance.
A New Path Forward
Lending Mojo offers credit unions a smarter, more sustainable alternative. Rather than relying on dealers to drive loan volume, Lending Mojo allows credit unions to fund direct loans at the point of sale through a digitally connected nationwide dealer network. This model enables credit unions to own the member relationship from the very beginning, driving stronger engagement, better credit performance, and increased profitability.
Credit unions that use Lending Mojo benefit from more than just cleaner workflows...