•  
• AIMBRIDGE NEWS
• EVENTS

Aimbridge News Detail

-- Ability to recognize and act on trends propels company to the forefront --

Denver, Oct. 02, 2005 – By recognizing trends early and responding to them quickly and effectively, Aimbridge Indirect Lending has helped credit unions grab a substantial portion of the indirect auto lending business away from banks in 2005. Aimbridge Indirect Lending is a national distribution channel that connects credit unions with an automotive dealer network to provide members and potential members with automobile loans and leases.

Two of the major trends in 2005 involved control issues. The first was control over data and the second was control of credit quality. Early on, Aimbridge realized that credit unions would have to exert better control over member data and tracking the results of the loans they were executing, even if they outsourced matters to a third-party processor. Aimbridge responded with a much more inclusive information management system, BridgePoint™, designed to help credit unions manage their indirect loan portfolios. “We wanted to provide our credit union customers with a more in-depth reporting system to track performance,” said Chris Truelson senior vice president for Aimbridge. “BridgePoint™ effectively takes all of the data that a credit union receives and puts it into user-friendly management reports that can easily spot trends in loan portfolios they should act on,” he said.

The BridgePoint solution provides in-depth information to assist credit unions in managing risk and maximizing program performance. It offers concise report organization and structure for credit unions and provides detailed transaction reports; summary /trending reports; and executive steering reports on applications, funding and staff management.

The second trend that Aimbridge realized was the need for credit unions to control the credit quality, parameters and criteria that are used to buy loans. To address this, Aimbridge® makes it easier for credit unions to analyze and accept more prime loans “We believe that the longevity of a credit union in this business is directly tied to the quality of the credit they are buying,” said Truelson. “It’s a huge issue right now as to whether credit unions make the decision in what they buy. With our program, they absolutely make the decision, and we merely support and consult on it. We have been proactive in making sure that our customers know that we have a prime orientation and that we are continuing to increase prime business as a percentage of the whole every month,” he said.

“Aimbridge is a processor,“ continued Truelson. “We’re not buying on behalf of the credit unions, rather just facilitating their ability to do business indirectly. All of our tools, technology, and consulting go to that end. We are providing the credit unions insight as well as tools to operate their businesses more efficiently.” According to Truelson, even though business is flat, credit unions are continuing to grab market share in indirect lending from banks and dealers. “Dealers recognize that fact and credit union indirect lending is becoming more popular with dealers. We are responding by making sure that the programs we have in place in the market are competitive for our credit unions, while giving them the level of control they need,” he said.

Truelson is optimistic about the future for indirect lending. “I see a rosy picture for credit unions as long as they manage their indirect lending programs properly. They will continue to grow and control the indirect lending market share. The dealers recognize it’s a growth base in the industry,” he said. As credit union indirect lending grows, so does Aimbridge.

This year, they added two new markets in Maryland and Virginia and they will add another one by mid-2006. They are also responding to growth in existing markets, especially in Florida, Michigan, Missouri, Texas and Maryland, by adding new credit unions and dealers to the Aimbridge indirect lending program. “In a lot of markets, we’ve barely tapped the surface of what we can produce,” said Truelson. “We will work with our existing lenders to make sure they are maximizing the value they are getting out of the market. We will add new lenders and we will build out the dealer network and increase points-of-sale. If we do those three things right, we can increase the value to everybody in that market incrementally.

Looking forward, Truelson noted, “Car buying never goes away. It’s something people will always need and, as long as we are positioned correctly in our markets, we will get our fair share of the business.”

 About Aimbridge Founded in 1984, Aimbridge markets financial products, such as auto loans, and insurance products through partnerships with credit unions. The company helps its partners attract members and deepen their relationships by providing members with more reasons to do business with their credit unions. Aimbridge Lending is comprised of three divisions, including Aimbridge Indirect Lending, Aimbridge Financial Services and Aimbridge Disposition Services. The company is headquartered in Denver and has remote offices throughout the United States.