48% of credit unions surveyed say auto is top growth segment

TransUnion’s data shows credit union auto loan origination volume grew at a rate more than double the pace of the entire industry. The findings came from a survey of 90 credit union executives that TransUnion released last week also highlighted that institutions’ appetite for auto paper certainly isn’t waning; it’s perhaps even becoming greater. TransUnion’s […]

TransUnion’s data shows credit union auto loan origination volume grew at a rate more than double the pace of the entire industry. The findings came from a survey of 90 credit union executives that TransUnion released last week also highlighted that institutions’ appetite for auto paper certainly isn’t waning; it’s perhaps even becoming greater.

TransUnion’s survey revealed that auto loans rank at the top of the list for credit union executives in terms of loan growth, focus, and opportunity during the next 12 months. Auto loans were ranked No. 1 by 48 percent of credit union executives and in the top three (of 12 credit categories) by 81 percent of respondents.

“Auto loans have proven to be one of the key growth opportunities for credit union executives in the past and should continue to do so in the future,” said Nidhi Verma, director of research and consulting in TransUnion’s financial services business unit.

“Auto loans are especially appealing because of the high demand for both new and used vehicles, as well as continued low delinquency rates,” Verma continued.

From the first quarter of last year to the first quarter of this year, TransUnion reported a 7.4-percent increase in new auto loans issued by credit unions, while the rest of the industry saw a 2.1-percent increase in the same time frame.

Read the full story on Auto Remarketing’s website.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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