Eau Claire, Wis.-based Royal Credit Union credits a pickup in indirect powersports loan volume to improvements made to its dealer funding process, said Brandon Riechers, the credit union’s executive vice president and chief lending officer.
The changes — implemented across its auto and powersports platforms in 2014 — included same-day dealer funding, same-day ACH, and direct access to loan officers to rehash deals in an effort to make the dealer transaction processes “as easy as possible,” he said.
Royal Credit Union’s indirect powersports portfolio grew 20% in 2015, and is on track for 15% to 20% growth this year, Riechers told Powersports Finance. The lender funds an average of $3 million to $4 million per month in indirect and direct powersports loans, up from about $2.5 million a year prior, he said.
Overall, powersports lending makes up 10% of Royal Credit Union’s portfolio. The lender has between 30 and 40 powersports dealers in its network, Riechers said. The number of dealers in Royal’s network has not changed much in the last few years, he said. Royal Credit Union is limited in its expansion prospects and opportunities, because it only operates in 24 branch locations throughout Wisconsin and Minnesota.