WASHINGTON–As Origence looks to execute on its strategy for 2025 it will be focused primarily on new programs and offerings rolled out in 2024, including improved POS lending, its new relationship with Tesla, and improved backoffice processes.
That includes expansion of its FIConnect, a CUSO of Origence that was launched in 2024 that connects borrowers, retailers, and credit unions at the point of sale for financing. It’s part of a strategy Boutelle has often referred to as being at the “top of funnel.”
Boutelle, who spoke to the Credit Union during America’s Credit Unions GAC in Washington, said that when new capabilities are developed it takes time to implement as there aren’t just technical and backoffice issues, but it also requires time for credit unions to understand the value proposition.
Achieving Scale
“It’s really about scaling a lot of these things right now,” Boutelle said. “With FIConnect we have all these channels now out there” where consumers can make purchases, including vehicles. He pointed out outlets such as Tesla, CarMax and other major car-brands allowing for the completion of an auto purchase completely online.
“I really think from an efficiency standpoint you’re going to see a lot more digital purchasing and delivery of cars and we’re going to help credit unions get to that as the market changes,” Boutelle told the Credit Union Daily. “Now, it’s going to take a long time, like anything. There was a time when doing the (auto loan) transaction you had to go into the branch. You just have to figure out how to put these new channels to work in a secure way.”
Lessons from Tesla Experience
While Tesla sales have slowed in 2025 and it’s unknown how it will perform the year, Boutelle said Origence did more than $1 billion in funded loans for credit unions on Tesla vehicles during 2024. It was the first time Origence had ever partnered with a single vehicle brand.
“It was a good start to this concept of kind of representing credit unions in retail situations where it would be very hard for them to show up by themselves, being that they’re usually smaller and regional,” Boutelle said. “Even if they weren’t, it would be very hard to take on the billions of dollars of lending that some of these big retailers do.”
Boutelle said Origence has developed a “good relationship” and its expanding into some of Tesla’s other product lines, such as solar power, with plans to continue to expand.
“We’re also talking to many other retail organizations,” Boutelle added. “Again, the concept here is that (these companies) want to work with a couple of lenders and we represent the credit union value proposition. They just don’t want a drop down box of thousands of credit unions.
A Piece of the Action
Instead, said Boutelle, all of those credit unions can purchase pieces of the loans.
In the case of the program with Tesla, there are 36 CUs live in the program that did the $1 billion in loans, and approximately another 30 in the implementation stage, according to Boutelle.
“We are not in business to compete with credit unions and to hold these loans for any length of time, so we have a model that really is pretty seamless,” he said. “We have a new way to match up your members, too. We have a way to upload their membership list and to match them up, so we are getting members back to the credit unions. It’s all encrypted. We’ve just introduced a new patent pending secure way to do it, where we’re not giving PII information anymore; we’re actually uploading sort of an algorithm with different little pieces of personal information. Very quickly we’re able to come back and tell them tell credit unions that this is your member.”
Why Some are Reluctant
Given the appetite for loans, why don’t some CUs want to participate?
Boutelle said the reason some CUs decline the financing option is they must agree to common pricing and terms, and the CU may not want to change its pricing. Origence always prices for about 100 basis points of ROA based on cost of funds and factoring in delinquencies.
“(The credit union) does all the servicing. They own that member, they own that new member and they own the current member, of course,” he said. “I think it’s still something that they’re starting to get their heads around. For credit unions it’s a new thing and they’re used to controlling their loan stuff.”
Generally, said Boutelle, most credit unions seek to create their own unique flavor when it comes to very complex lending decisions. He noted, for example, there are more than 1,000 variables in Origence’s decision engine and LOS.
‘Amazing’ Differences’
“It’s amazing how credit unions are different. They literally turn on different things,” he explained. “But this does sort of require them to have the same kind of approach to things.”
Boutelle added the company has begun to expand its capabilities through partnerships with ZestAI, Synaptic and other lending decision providers, which he called a “big lift” for lenders to make more loans, and to do so instantaneously.
Boutelle said he believes at least 80% of all loans should be instant-decisioned at this point, given the technology available.
Reflecting on 2024
Looking back to 2024, Boutelle said he believes the company’s biggest accomplishments, in addition to the Tesla partnership, remains the growth of FI Connect and its new e-contracting solution, which he said is true-e-contracting in that it has digitized the entire auto contracting/financing transaction, something dealers have made clear they now expect
“With e-contracting and digital signatures, there is an extra cost but it leads to fewer errors and faster funding for dealers,” he said.
The Message for 2025
Boutelle said if there is one message he’d like to stress in 2025 ir is that Origence is 100% owned by credit unions and that he would like to see even more credit unions become part of the organization.
“Our board is not interested in selling. We’re not like one of these fintechs that are looking to sell,” he said. “We’re looking to create more and more opportunities for credit unions…We want to be partners with them and we have ways to help them make more loans and different channels do it more efficiently based on all of the other tech we have. We can be a partner with them and still represent their brand in the marketplace. That’s what FIConnect does.”
In addition, said Boutelle, the company will continue to strive to be a “thought leader” in 2025 and moving forward as it also works to integrate feedback from its advisory councils.
“We do listen to the markets,” said Boutelle.
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