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Cubus Solutions Newsletter: December 2017

Auto Loans: A Silent Bubble?

Last week, a national bank holding company, TCF, announced it will discontinue all indirect auto loan originations, effective December 1, 2017. In July, Wells Fargo announced it was scaling back and remodeling its auto lending business in response to growing stress in the market. They’ve cut 30 percent so far. All this is due to the desperation that faced automakers and lenders after the financial crisis. In their desperation, they found a trick that could result in higher sales and more loans. Lenders started to extend the length of the loans, which reduced the monthly payment on the cars. As they were doing this, they also started to give loans to borrowers with not-so-great credit–the subprime borrowers, giving a boost to auto sales and auto loans (up 60 percent). Now the delinquency rates are increasing, and FIs are nervous. Rightly so. Look at the housing market in 2006–2007. As default rates soared, banks’ mortgage lending almost halted. Doubtful that credit unions will stop all auto lending, but it does give one time to pause and review the financial outlook of the indirect auto loan origination business as compared to alternative uses of capital.

~John-Ashley Paul, President/CEO

Meritrust Launches Skip-A-Pay to Rave Reviews

Meritrust Credit Union of Wichita, KS went live with Skip-A-Pay in October and has already processed more than 7,000 skips, which is the number of skips they processed in all of 2016! Meritrust Credit Union has nearly $1.3B in assets, 15 branches and over 92,000 members and was previously processing skips manually. With Skip-A-Pay, they have refocused staff on other priorities, made it easier for members to skip payments online and increased non-interest income. If your credit union is interested in learning more, please contact us for a personal demo.


Reminder!It is that time of year. Please review your product calendar to insure the Federal Reserve holidays are updated. Changes to the calendar can be made from Deposits Admin; under either Deposits OR Transfers in the credit union calendar option. If you need additional assistance, or cannot find the control, please contact us at

What We’re Reading
A gift of graphics. This blog site offers five great graphics for why people should join a credit union. You can use them on social media and in email messages…or just about anywhere.

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Consumers fear bank fraud more than death and terrorist attacks. FICO reveals that 44% of consumers in the U.S. say they are most afraid of identity theft and banking fraud, scoring as their top concern in a survey. See what you can do to relieve those fears.

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We have recently reached out to our primary contact at your credit union for an update of the contacts we should have here at Cubus for your credit union. We want to be sure and keep you and your team informed.  If you are our primary contact and have not received our email, please contact Starr Shepherd.

Upcoming Webinars Thursday, 12/14
Cubus One Digital Banking Platform
All webinars are held at 11am Pacific Time

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