TCI Case Study: Chessie Federal Credit Union
ISLANDIA, N.Y., May 6, 2014 /PRNewswire/ –
Founded in 1948 and headquartered in Cumberland, Maryland with five branches across a tri-state region, Chessie Federal Credit Union offers a full line of financial products and banking services to its members in Pennsylvania, western Maryland and northern West Virginia. Chessie was seeking to expand its indirect loan program while offering the most competitive rates possible. Over the last three years, Chessie FCU has processed more than $100 million in car loans (not all indirect) and in the last four years has added nearly 4,000 new members.
Chessie FCU had been processing indirect loans for 11 years, using DealerTrack and RouteOne products. In February 2011, Chessie converted to TCI’s DecisionLender Lite platform and saw a noticeable increase in indirect loan business. Based upon dealer input, their goal was to strengthen the indirect loan program by further streamlining loan processing response time.
In May 2013, Chessie upgraded their system to DecisionLender, which greatly improved their response time to auto dealers and thus resulted in a marked increase in the number of applications received and a substantial increase in CFCU membership. Additionally, the new interface with FISERV further streamlines Chessie’s funding steps. Thus dealers could be paid faster, costs were reduced and clerical errors eliminated. An unanticipated benefit was easier compliance audits.
From 2010 to 2013, Chessie’s indirect loan volume increased dramatically:
2010: 1500 apps; <$4 million
2011: 3300 apps; $5.8 million
2012: 4200 apps; $23 million
2013: 4500 apps; $25 million
After the 2011 upgrade to TCI’s DecisionLender Lite software, Chessie picked up 10 new dealerships and saw a substantial increase in new members (67% of total dealer loans from new members). After the 2013 upgrade to DecisionLender, Chessie was able to reduce their response rate time from 20 minutes to 5 minutes for a standard loan process, and has seen membership increase 1500+ over the last two years. In 2013, 63% of total indirect loans went to new members.
In December 2010, CFCU had carried $ 13.4 million in dealer loans, but subsequent to implementing DecisionLender Lite and DecisionLender, has increased indirect volume to $ 39.3 million with an interest weighted average of 5.49.
“It has been exciting working with TCI and seeing the positive response from dealerships who love working with us and from our members. Time and convenience are the two factors that everybody needs these days, and TCI helps with both. TCI’s staff was patient and very detailed during the installations. DecisionLender is an excellent tool for us to bring new members in and introduce them to the other products we offer, so it has not only expanded our indirect loan business but our entire credit union offering.”
Richard Daugherty, President, Chessie Federal Credit Union
For more information please contact:
Vice President of Sales