Large regional credit union achieves 124% increase in automated consumer approvals with GDS Link and TransUnion

Scenario

Marine Credit Union has been serving communities in Wisconsin, Minnesota, Iowa, and Illinois since 1931, offering subprime loans mainly for cars, RVs, and boats to over 75,000 members.

Marine's in-house model for scoring consumer applications was complex and not easily configurable, necessitating changes to better respond to market conditions. The in-house model was yielding an auto-decision on 37% of applications and producing an overall auto-approval rate of 17.86% of all applications.

Marine aimed to simultaneously increase both their auto-decision and auto-approval rates, with the stated goal of increasing the auto-approval to 25% of applications to streamline the process, improve member experience, and optimize personnel bandwidth while generating cost and time savings.

The solution

GDS Link's Modellica Analytics team collaborated with TransUnion to develop a flexible loan approval model that could yield an automatic decision on 60% of applications, as well as increasing the overall auto-approval rate to 40%.

The new auto-approval process seamlessly integrates with the legacy system, improving efficiency and decreasing decision times. GDS Link's model uses existing look-up tables for PTI and exposure recommendations to fit the profile of the applicant.

The collaboration resulted in a transformative shift in lending capabilities, potentially doubling revenue while reducing employees' workload. Marine Credit Union has not only achieved its lending goals but also unlocked incredible growth opportunities. 

The results

Together, TransUnion and GDS Link increased automated consumer approvals and total bookings, while reducing manual review hours needed.

*15 minutes per manual review on average

**Projected Figures, based on 30% Booking Rate on Manual Approvals