CU 2.0 Podcast Episode 237 Union Credit on RIP for Loan Apps

You probably have heard about CuneXus, the CUNA Mutual company that helps a credit union sort through its members and determine which offers – car loans, personal loans, credit cards and more – this member is eligible for without filling out a loan application.

Read the last six words again: without filling out a loan application.

Think about it: most credit unions already have all the data they need on hand to approve or deny a member’s request for credit. So why not tell the member what he/she is eligible for?

It works. Your CU 2.0 Podcast host personally received a letter from his principal credit union that told me I was eligible for a bunch of things including a credit card. It occurred to me I had no credit card with the institution so why not?  Basically I said I’d take it and, whoosh, it arrived.

On my desk now is another letter from that CU offering me my choice of a car loan, a personal loan, a checking line of credit, or an auto refinance deal.

See how this works?

A couple hundred credit unions are CuneXus users and they are because this is a way to make members more profitable to the credit union while also giving members friction-free access to new credit tools.

Enter Union Credit, a new Santa Rosa, CA-based fintech with the plan to build upon what CuneXus does by extending the same kinds of credit offers to non-members of the credit union.

This is all about member acquisition, said Dave Buerger, a co-founder of CuneXus and now CEO of Union Credit.

Buerger is on the show today along with Barry Kirby, also a CuneXus alum and now a co-founder of Union Credit.

Right now Union Credit is available only to CuneXus customers (and CUNA Mutual is also an investor in Union Credit).  That means setup of Union Credit at a credit union will be a breeze.

Face it: filling out a loan application is a hassle.  Who wouldn’t cheer a program that ditches the loan app and says, which product do you want? You are pre-approved.  For real.