San Antonio Credit Union’s loan volume increases nearly 53% with CUDL Retail.

Automate the processing of retail loan applications.For eight years, San Antonio Credit Union had been working with a number of merchants in the San Antonio, Texas area to provide point of purchase retail financing to their members. Its process worked, but had challenges that prevented it from thriving like the credit union had envisioned. San Antonio Credit Union’s system for indirect retail loans allowed merchants to electronically submit their customers’ applications; but the system lacked the ability to auto decision, electronically transmit loan documents, and provide ACH funding to merchants. The manual processing of loans and inability to work outside of branch hours made the credit union’s existing system not as effective. These restrictions prevented many retailers from initiating a finance program with the credit union on a consistent basis.


Incorporate CUDL Retail’s Point of Purchase Solution.



When San Antonio Credit Union realized its retail financing program was not meeting its full potential, it began the search for a better solution. The credit union recognized what its current system lacked and what was needed to best meet their current needs and accommodate future growth. Ultimately, San Antonio Credit Union chose CUDL Retail, based on three key deliverables:

Auto Decision. CUDL Retail would replace San Antonio Credit Union’s manual processing approach and solve the challenge of providing members with financing after branch hours. CUDL Retail’s auto decisioning would provide a new level of convenience to San Antonio Credit Union and its members. CUDL Retail gives members access to point-of-purchase loans wherever they shop with no extra trips, no after-hour worries and no delays. San Antonio Credit Union would also be able to set its decision parameters and criteria to help minimize risk and increase efficiencies.

Fast, Efficient, Transmission of Loan Documents. CUDL Retail would provide the credit union with more than online applications. It would also allow San Antonio Credit Union and its merchants to transmit loan documents electronically. Electronically submitting loan documents would also reduce the credit union’s staff processing time. Merchants appreciate working with a local finance option, and the hassle-free process that the credit union provides to them and their customers.

Provide ACH Funding to Merchants. San Antonio Credit Union needed to implement a system that would improve on its manual processing approach. Its restrictions prevented many retailers from initiating indirect financing with the credit union on a consistent basis. CUDL Retail would provide point-of-purchase financing to San Antonio Credit Union’s members in local merchants’ stores. CUDL Retail would make it easier for merchants to interact with San Antonio Credit Union by automatically logging all communications between the two parties. CUDL Retail would also allow San Antonio Credit Union to choose the merchants it worked with. This in turn would expand relationships with business accounts and provided an avenue for new business account acquisitions.

Increased efficiencies and loan volume, and minimized expenses. 

San Antonio Credit Union’s funded retail loans began increasing shortly after switching their indirect retail lending system to CUDL Retail. A large percent of the increase was also more profitable, since many of the loans were smaller ticket with shorter terms – ranging from 90 days to 24 months, with an average interest rate of 10%. During the first year of using CUDL Retail, San Antonio increased loan volume by almost 53% and generated $5 million in new retail loans.

CUDL Retail has been given more opportunity to develop strong relationships with retailers representing the home improvement and recreational markets. “We currently have 50 active merchants on our program and our ultimate goal is to reach at least 125. So, the credit union is poised for small ticket portfolio germination,” stated Sam Rocha, Manager of Indirect Merchant Financing at San Antonio Credit Union. CUDL Retail is perfect for loan growth. Even better — it’s an avenue for new membership. “Our retail loans are about 90% new members and 10% existing,” added Rocha.

CUDL Retail increased the credit union’s efficiencies along with their volume in booking. January to June in 2011, San Antonio Credit Union looked at 1,500 retail loan applications, with an approval ratio of 50% and look to book ratio at 35%. San Antonio Credit Union has grown its overall retail loan portfolio since incorporating the CUDL Retail program and only expects to keep growing.


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