Tag: credit unions

What if some of your best potential borrowers are the ones your traditional credit strategy can't fully see? A credit score can tell lenders a lot about a consumer, but it doesn't always capture the full picture of how someone is managing their financial life. For consumers with nontraditional income patterns or limited credit histories, that incomplete view can mean missed opportunities. In this Ask the Expert session, David Elmore of Experian talks with Michelle Goeppner, Chief Lending Officer at Vantage West Credit Union, about how alternative data can provide additional context around consumer risk, uncover opportunities traditional data alone might miss and help lenders expand their reach without disrupting strategies that already work. Who could lenders be missing? That question is especially important when a consumer’s financial life doesn’t fit neatly into a traditional credit profile. Take gig workers. Someone driving for Uber or delivering for DoorDash likely has a different income pattern than a salaried employee — irregular, seasonal, spread across platforms. That doesn't mean they aren't reliably managing bills, rent and other obligations. It just means a traditional file may not show it. Goeppner has a name for the risk of overlooking that context: FOMM — Fear of Missing Members. You've heard of FOMO — Fear of Missing Out. I think about it as FOMM — Fear of Missing Members. Who are we leaving behind if we're not using it?Michelle Goeppner, Chief Lending Officer For credit unions especially, that's not just a data question — it's a mission question. A partial view of a member's finances can mean missing a member the institution exists to serve. The credit score alone doesn't tell you where someone's headed Traditional credit data is still  foundational to lending decisions. But alternative data — income, cash flow, payment behavior — adds a layer that a credit score alone can't provide. Goeppner illustrates the distinction with two consumers who have exactly the same credit score: I don't know if you're a 640 score on your way to 720 — or are you a 640 headed southwards to 580? It doesn't show me how you're managing your day-to-day financial lifeMichelle Goeppner, Chief Lending Officer Two borrowers can share the same score and be moving in opposite directions. Alternative data helps lenders tell the difference — and put that score in context rather than treating it as the whole story. Start small and layer it in Adopting alternative data doesn't mean overhauling an existing strategy. As Goeppner puts it, it's additive, not a replacement: It's not a rip and replace. You don't have to let go of your existing playbook. It's additive — you layer it in.Michelle Goeppner, Chief Lending Officer Her advice for getting started: Define the problem first. Are you trying to increase approvals, reach more underserved borrowers, or improve decisioning for a specific product? Test before you scale. Revisit loans you've already booked and ask whether alternative data would have changed the outcome — or pilot it on a single product before rolling it out further. Build in governance from day one. Document what changed, where the new data was used, and what results followed. As Goeppner puts it: “Crawl, walk, run. Slow and grow.” More loans without changing the risk profile For Vantage West, the value of that approach has shown up in its lending results. It has been an absolute game changer for us at Vantage West. We have been able to make more loans to our target members, our target segments, without changes to our risk profile.Michelle Goeppner, Chief Lending Officer That distinction matters. The goal isn't approving more loans for its own sake — it's having enough information to recognize good borrowers that traditional data alone would have missed. The result is a fuller picture of the people behind the credit file, and more confidence in deciding who a lender can serve. Explore alternative data with us Alternative data can help lenders add context to traditional credit information for a more complete view of consumers. Experian works with institutions of all sizes to incorporate additional consumer signals into existing lending strategies — strengthening decisioning, managing risk and identifying new opportunities for growth. Learn more Contact us About our experts Michelle Goeppner Chief Lending Officer, Vantage West Credit Union Michelle Goeppner is a dynamic financial services executive with over two decades of experience driving strategic growth, product innovation, and operational excellence across leading credit unions and financial institutions. Currently serving as the Chief Lending Officer at Vantage West Credit Union, Michelle leads the strategic vision for multi-billion-dollar consumer loan and deposit portfolios, as a member of the Executive Coalition. Her expertise spans consumer lending, product management, integrated marketing, and talent development, with a proven track record of leveraging fintech partnerships, automation, and data-driven strategies to optimize portfolio performance and member engagement. Throughout her career, Michelle has held pivotal leadership roles in organizations such as Alliant Credit Union and Discover Financial Services. She is recognized for her collaborative approach, detail-oriented execution, and commitment to developing future female leaders. Michelle’s contributions include founding Alliant’s Women’s Resource Group, serving on advisory councils and boards, and earning multiple industry awards for excellence and innovation. She holds an Executive Certification in Product Management from UC Berkeley, a Master of Science in Integrated Marketing Communications from Roosevelt University, and a Bachelor of Science in Marketing from Northern Illinois University. David Elmore Vice President of Fintech Sales, Experian David Elmore leads a team of fintech sales professionals at Experian focused on helping fintech organizations drive responsible, scalable growth through data-driven analytics and decisioning. With more than 20 years in financial services — a decade of it focused on fintech — he brings deep expertise in applying traditional and alternative data across the customer lifecycle. David and his team partner with fintech leaders to navigate opportunities across acquisition, underwriting, portfolio management, and collections, balancing innovation, risk, and trust.

Discover how Union Credit and Experian help credit unions reach younger consumers through personalized digital lending experiences.

The automotive market is entering a new phase defined not just by what consumers are buying, but by how they’re choosing to finance it. According to Experian Automotive’s State of the Automotive Finance Market Report: Q1 2026, nearly one-third (35.55%) of all new vehicle loans now stretch more than six years, up from 30.83% in Q1 2025. Similarly on the used side, 31.54% of loans extended more than six years, an increase from 28.60% last year. The shift highlights why affordability is reshaping how consumers are financing their vehicles, particularly in larger and higher-priced vehicles. Refinancing gains traction as interest rates stabilize In addition to longer-term loans, consumers are becoming increasingly deliberate with their financing decisions and managing monthly payments as refinancing activity has gained momentum. For instance, consumers who refinanced this quarter lowered their interest rate by 2.2% and saved an average of $81 on their monthly payment. Credit unions, in particular, continued to play a major role in helping consumers secure more affordable payment options. In Q1 2025, credit unions accounted for the lion’s share of automotive refinancing at 63.43%, from 62.31% a year ago. By comparison, banks went from 23.51% to 22.59% year-over-year. Furthermore, those who refinanced with a credit union saved an average of $101 this quarter, whereas those who refinanced with banks saved $60. Expanding credit access through flexible financing Another notable trend this quarter was the incessant growth in subprime financing as credit accessibility across the market continues to increase. In the first quarter of this year, subprime borrowers made up 15.75% of total vehicle financing, from 14.40% last year. For new vehicles in particular, the subprime market went from 5.61% to 6.88% year-over-year, while subprime in used vehicle financing grew to 20.60% this quarter, from 19.36% a year ago. Increased activity in the subprime segment highlights continued confidence in the automotive market and underscores the importance of expanded financing options. As consumers seek greater flexibility with financing decisions that fit their lifestyle, lenders and dealers have the opportunity to approach them with more personalized solutions. These trends are helping keep both new and used vehicle markets moving forward, while creating new opportunities for consumers to manage payments and purchase confidently. To learn more about automotive finance trends, view the full State of the Automotive Finance Market Report: Q1 2026 presentation on demand.

In an ever-evolving automotive landscape, where shifting consumer behavior meets fluctuating market dynamics, Experian’s State of the Automotive Finance Market Report: Q2 2025 delivers key insights into how both consumers and professionals are adapting to the changes. This quarter’s report revealed a sharp increase in vehicle refinancing—up nearly 70% from Q2 2024—as consumers capitalized on the more stable rate environment. In fact, after refinancing, the average interest rate went from 10.45% to 8.45%. That shift resulted in their monthly payment dropping by an average of $71. Interestingly, credit unions played a significant role in the refinance surge, increasing their market share from 63.22% last year to 68.33% this quarter, and borrowers who refinanced through credit unions saw their monthly payments decrease by $87 on average. Banks saw a slight dip in their share of the refinancing market year-over-year, going from 22.71% to 21.45%, and borrowers who refinanced through them saved an average of $46 a month. New leaders emerge as the lender market share continues to evolve Taking a deeper dive into the automotive finance market share, banks reclaimed their leading position for total vehicle financing, rising to 27.50% in Q2 2025, from 24.50% in Q2 2024. Meanwhile, captives declined from 30.17% to 26.63% year-over-year, and credit unions slightly increased from 20.35% to 21.04% during the same period. For new vehicles, captives continued to lead at 52.39% this quarter, though it was a drop from 60.74% last year. On the other hand, banks grew from 21.12% to 25.91% and credit unions went from 9.99% to 12.24% in the same time frame. On the used side, banks edged ahead, increasing their share to 28.59% in Q2 2025, from 26.80% last year. Credit unions saw slight growth from 27.59% to 27.63%, while captives declined from 7.83% to 6.40% year-over-year. As affordability remains a key priority, consumers seem to be exploring financing options that offer more favorable terms. While Experian Automotive’s report continues to illustrate the evolving dynamics, these data-driven insights can empower both consumers and industry professionals to make smarter financial decisions. To learn more about automotive finance trends, view the full State of the Automotive Finance Market Report: Q2 2025 presentation on demand.

Amid interest rates leveling out and some lenders reassessing go-to-market strategies, the automotive finance landscape is experiencing notable shifts in market share. According to Experian’s State of the Automotive Finance Market Report: Q1 2025, banks recouped some of their total finance market share for the first time in several years, reaching 26.6% during the quarter, up from 24.8% a year ago. On the other hand, captives’ total market share declined from 31.3% to 29.8% year-over-year and credit unions experienced a modest increase from 20.2% to 20.6%. Despite the overall market share shifts, captives continue to lead in new vehicle financing at 57.1% in Q1 2025, although down from 62.1% the year prior. Meanwhile, banks increased to 24.1% this quarter, from 20.4% in Q1 2024 and credit unions went from 9.6% to 10.9% during the same period. On the used side, banks and credit unions were grouped much closer together. Banks led the way with 28.4% of the used finance market in Q1 2025, up from 27.9% last year, while credit unions went from 27.7% to 28.2% year-over-year and captives declined from 8.5% to 7.4%. As market share movement continues to be a valuable indicator of shifting strategies and consumer behavior, it’s important for automotive professionals to keep a close eye on these shifts to uncover new opportunities while looking for ways to stay ahead of the rapidly evolving industry. Breaking down the latest finance trends Data in the first quarter of 2025 shows the automotive finance market continues to stabilize as automotive professionals gain clearer visibility into lender behavior and consumer demand. For example, the average loan amount for a new vehicle increased $1,110 year-over-year to $41,720 in Q1 2025. However, the average interest rate dropped from 6.9% to 6.7%, and the average monthly payment went from $737 last year to $745 this quarter. For used vehicles, the average loan amount saw a slight uptick of $90 year-over-year, reaching $26,144 this quarter. Meanwhile, the average interest rate declined from 12.4% last year to 11.9% this quarter and the average monthly payment trended lower at $521, from $524 in Q1 2024. Monitoring and leveraging market share shifts and financing trends can support strategic planning while empowering automotive professionals to anticipate consumer purchasing patterns and tailor conversations more effectively to meet buyers where they are during their car buying journey. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q1 2025 presentation on demand.

While federal funding is being scaled back for community-based financial institutions, we are scaling up to support CDFIs and credit unions.

The automotive industry is constantly changing. Shifting consumer demands and preferences, as well as dynamic economic factors, make the need for data-driven insights more important than ever. As we head into the National Automobile Dealers Association (NADA) Show this week, we wanted to explore some of the trends in the used vehicle market in our Special Report: State of the Automotive Finance Market Report. Packed with valuable insights and the latest trends, we’ll take a deep dive into the multi-faceted used vehicle market and better understand how consumers are financing used vehicles. 9+ model years grow Although late-model vehicles tend to represent much of the used vehicle finance market, we were surprised by the gradual growth of 9+ model year (MY) vehicles. In 2019, 9+MY vehicles accounted for 26.6% of the used vehicle sales. Since then, we’ve seen year-over-year growth, culminating with 9+MY vehicles making up a little more than 30% of used vehicle sales in 2024. Perhaps more interesting though, is who is financing these vehicles. Five years ago, prime and super prime borrowers represented 42.5% of 9+MY vehicles, however, in 2024, those consumers accounted for nearly 54% of 9+MY originations. Among the more popular 9+MY segments, CUVs and SUVs comprised 36.9% of sales in 2024, up from 35.2% in 2023, while cars went from 44.3% to 42.9% year-over-year and pickup trucks decreased from 15.9% to 15.6%. 2024 highlights by used vehicle age group To get a better sense of the overall used market, the segments were broken down into three age groups—9+MY, 4-8MY, and current +3MY—and to no surprise, the finance attributes vary widely. While we’ve seen the return of new vehicle inventory drive used vehicle values lower, it could be a sign that consumers are continuing to seek out affordable options that fit their lifestyle. In fact, the average loan amount for a 9+MY vehicle was $19,376 in 2024, compared to $24,198 for a vehicle between 4-8 years old and $32,381 for +3MY vehicle. Plus, more than 55% of 9+MY vehicles have monthly payments under $400. That’s not an insignificant number for people shopping with the monthly payment in mind. In 2024, the average monthly payment for a used vehicle that falls under current+3MY was $608. Meanwhile, 4-8MY vehicles came in at an average monthly payment of $498, and 9+MY vehicles had a $431 monthly payment. Taking a deeper dive into average loan amounts based on specific vehicle types—as of 2024, current +3MY cars came in at $28,721, followed by CUVs/SUVs ($31,589) and pickup trucks ($40,618). As for 4-8MY vehicles, cars came in with a loan amount of $22,013, CUVs/SUVs were at $23,133, and pickup trucks at $31,114. Used 9+MY cars had a loan amount of $19,506, CUVs/SUVs came in at $17,350, and pickup trucks at $22,369. With interest rates remaining top of mind for most consumers as we’ve seen them increase in recent years, understanding the growth from 2019-2024 can give a holistic picture of how the market has shifted over time. For instance, the average interest rate for a used current+3MY vehicle was 8.0% in 2019 and grew to 10.2% in 2024, the average rate for a 4-8MY vehicle went from 10.3% to 12.9%, and the average rate for a 9+MY vehicle increased from 11.4% to 13.8% in the same time frame. Looking ahead to the used vehicle market It’s important for automotive professionals to understand and leverage the data of the used market as it can provide valuable insights into trending consumer behavior and pricing patterns. While we don’t exactly know where the market will stand in a few years—adapting strategies based on historical data and anticipating shifts can help professionals better prepare for both challenges and opportunities in the future. As used vehicles remain a staple piece of the automotive industry, making informed decisions and optimizing inventory management will ensure agility as the market continues to shift. For more information, visit us at the Experian booth (#627) during the NADA Show in New Orleans from January 23-26.

Grab a cup of coffee and join our experts for a conversation on credit union collection trends and successful account management strategies.

Over the past few years, we’ve seen in-market shoppers lean into the used vehicle space; however, with new vehicle inventory continuing to rebound, we’re starting to see a reversal of fortune. Data in the first quarter of 2024 shows how the resurgence of new vehicle inventory is reshaping the automotive landscape.

In today's fast-paced financial landscape, financial institutions must stay ahead of the curve when it comes to account opening and onboarding. Digital account opening, empowering a prospective client to securely and efficiently open a new account, is key to how banks, credit unions and other financial institutions grow their business and expand their portfolio. Regardless of the time, money and other resources a financial institution invests in marketing to the right target prospect and tailoring an attractive offer, it’s worthless if that prospective customer can’t complete the process due to a poor account opening experience. Unhappy customers vote with their feet. A recent Experian study found that of the more 2,000 consumers surveyed who’d opened a new account in the last six months, 37% took their business elsewhere due to a negative account opening experience.   The choice of a reliable partner can make all the difference to your account opening and onboarding experience. The right partner must provide your financial institution with access to the freshest credit data; advanced analytics, scores and models to empower you to say yes to the right customers that meet your lending criteria; and industry-leading decision engines that make the best decisions and enable you to provide a seamless customer experience.  Moreover, the right partner will also help you in maintaining high levels of security without compromising user experience, all while adhering to regulatory compliance.  Recently, Liminal, a leading advisory and market intelligence firm specializing in the digital identity, cybersecurity, and fintech markets, released its highly anticipated Link™ Index Report for Account Opening in Financial Services, which evaluates solution providers in the financial sector, in the areas of compliance and fraud prevention for account opening. The report recognized Experian as a market leader for compliance and fraud prevention capabilities and market execution. Experian’s identity verification and fraud prevention solutions, including CrossCore® and Precise ID®, received the highest score out of the 32 companies highlighted in the report. It found that Experian was recognized by 94% of buyers and 89% identified Experian as a market leader.   “We’re thrilled to be named the top market leader in compliance and fraud prevention capabilities and execution by Liminal’s Link Index Report,” said Kathleen Peters, Chief Innovation Officer for Experian’s Decision Analytics business in North America. “We’re continually innovating to deliver the most effective identity verification and fraud prevention solutions to our clients so they can grow their business, mitigate risk and provide a seamless customer experience.”  You can access the full report here. To learn more about Experian’s award-winning fraud solutions, visit our identity fraud hub.  Download Liminal Link Index Report

Learn how Washington State Employees Credit Union increased their revenue and member satisfaction by implementing a digital prequalification process.

Experian’s State of the Automotive Finance Market Report: Q4 2022 found that the year-over-year (YOY) average new loan amount increased 4.04%, a smaller growth rate compared to 12.46% YOY in Q4 2021

To help the industry better understand the widespread growth, ahead of the show we compiled an Auto Finance Year-in-Review report to break down all things EV—from financing trends to vehicle segments and more.

Credit unions are working toward financial inclusion, but it's a process that requires establishing best practices, partnerships and engaging leadership.

For credit unions, having the the proper income and employment verification tools in place is key when creating a first-class application process.