Loan Link Closes $890M In Loans During Its First Year
In its first year of business, the LoanLink Center, a call center formed by CUNA Mutual Group and APPRO Systems and in which 30 leagues have invested, reports it did almost $890-million in new loans for credit unions.
"We've grown to serving 265 credit unions and we've processed almost 300,000 loan applications," said VP Mike Armstrong.
The average loan application is for $15,000. The center is used by a number of credit unions, including Texans CU, Richardson, Texas, to handle after-hours and overflow business.
Armstrong said credit unions are also seeing added loan revenue from the sale of protection solutions such as credit life and disability insurance, mechanical repair coverage and Guaranteed Asset Protection (covers the difference between the insurance settlement and a loan balance on a damaged vehicle). "In the first year, 34% of LoanLink borrowers chose to purchase credit insurance protection options," he said.
Members also purchased $8.2 million worth of GAP and $1 million worth of mechanical repair coverage via the Center.
The LoanLink Center receives an average of 1,700 incoming telephone calls per business day (8 a.m. to 5 p.m.); 560 Internet loan applications during the same business-day hours; 1,850 telephone calls during the weekend; 550 Internet loan applications during weekend hours, and 230 Internet loan applications during a typical workday, after regular business hours.