How Union Credit’s embeddable loan marketplace positions CUs for a digital-first future

Banks and credit unions (CUs) share overlapping goals, but their approaches reflect their differences. Building long-term member loyalty has been a strength of CUs, but expanding into new relationships can be tough in today’s competitive environment. It requires fresh strategies. 

Union Credit, a California-based startup founded nearly two years ago, aims to rewrite that narrative. The company enables credit unions to offer pre-approved, one-click credit options directly at a merchant’s point of sale, creating opportunities to connect with new borrowers.

Union Credit’s framework

Union Credit’s model is built around embedding digital lending solutions within the buying journey, providing borrowers with access to credit when they need it, instead of waiting for them to visit a credit union branch. It’s a marketplace for CUs that facilitates this process.

CUs can opt in or out monthly of the Union Credit’s marketplace, paying only for the members they acquire.

“This eliminates concerns about long-term commitments or unnecessary expenses and ensures credit unions can adopt innovative digital solutions while maintaining control and minimizing risk,” explains Dave Buerger, CEO and co-founder of Union Credit.

Going the indirect lending route: A recent study shows that technology is becoming crucial for business growth, and by focusing on digital integrations, CUs can boost their loan growth by 2025.

“The future and growth of the credit union movement rely on their ability to evolve and meet consumers where they are, offering the products and services they truly want and need,” notes Buerger.

Traditional methods like direct mail and word-of-mouth aren’t particularly impactful on their own in this digital age, according to Buerger. To achieve loan growth, CUs will likely have to rethink their approach by taking proactive digital steps to engage borrowers. By embedding their loans and products within e-commerce platforms, CUs can be present when borrowers need them most — during key decisions like car purchases, debt consolidation, or major financial moves.

“This evolution of indirect lending not only modernizes how credit unions engage with consumers but also reinforces their community-focused values,” he says.

Embedding personalized credit offers into consumers’ digital shopping journeys also provides CUs opportunities to tap into new markets and demographics.

Here’s how it works: When consumers shop on participating digital platforms and merchant websites, Union Credit embeds pre-approved loan rates, terms, and limits directly at the point of sale. Consumers can select the pre-approved offer that best fits their needs. With clear visibility into their buying power while shopping, consumers can make quick and informed credit decisions. 

“This approach not only simplifies the experience of becoming a member but also positions credit unions as a modern, convenient choice in the digital age,” says Buerger.

Once a consumer selects a pre-approved loan offer, the loan details get routed to the participating CU for final approval and processing. The CU then manages the loan application and approval process through Union Credit’s vendor relationship with CuneXus, a lending automation platform, also co-founded by Buerger.

“CUs evaluate the purpose of the loan and the requested amount to ensure it aligns with the borrower’s financial capacity,” says Buerger. “This tailored approach allows CUs to offer loans that promote financial stability while meeting members’ unique needs.”

The loan acquisition tech: When a member clicks on a credit offer, CuneXus processes the request through its algorithms, connecting with the credit union’s core system and other data sources. It evaluates hundreds of data points, including borrowers’ financial history, income, and account behavior, to assess their creditworthiness almost in real-time. Eligible members receive tailored, pre-approved offers for auto loans, personal loans, credit cards, and home equity lines of credit (HELOCs). These offers are refreshed to stay aligned with current customer data.

The approval of loans or credit rests with the individual CUs participating in the Union Credit marketplace. Each CU applies its own underwriting criteria and decision-making process.

Other tech-related aspects: Union Credit enables integrations across CUs through a Loan Origination System (LOS) and an intuitive lender portal. 

i) Loan Origination System: By directly integrating with each credit union’s LOS, Union Credit runs a streamlined process that connects consumer applications with the CUs’ existing systems. This eliminates duplicative workflows and allows new member data and loan requests to flow easily into CUs’ established processes. 

ii) Intuitive Lender Portal: Union Credit’s lender portal enables CUs to manage their campaigns on their own. They can make real-time adjustments to their monthly campaigns — such as updating offers or targeting criteria — without contacting Union Credit for assistance. “This self-service functionality removes friction, saves time, and puts full control in the hands of the credit union,” notes Buerger.

From Loan to Loyalty: Building full-service banking relationships

Over the past year, Union Credit has integrated over 50 CUs into its marketplace, drawing over 20,000 new members and facilitating personal loan originations totaling over $106 million. 35% of these new members have also opened checking accounts at participating credit unions.

Buerger highlights that CUs have the opportunity to use user activity data to create personalized offerings that enhance member loyalty, drive cross-product adoption, and support long-term growth. This also paves the way for moving beyond loans to establish a complete banking relationship with borrowers.

To enable credit unions to turn initial loan interactions into a gateway for deeper banking relationships, Union Credit implements strategies like:

• Encouraging Deposits: Union Credit integrates incentives — like rate discounts or rewards — into the loan process, encouraging borrowers to open checking accounts or transfer payroll deposits.

• Promoting Additional Products: Early offers for balance transfers and credit card usage help drive product adoption. Buerger notes that 53% of new cardholders make purchases within 30 days, while 56% complete balance transfers.

Buerger notes that these strategies for member attraction and retention have resulted in new CU members with an average credit score of 795 and checking balances averaging $1,876.

Connecting with younger consumers

Of the 20,000 new CU members, 60% are under 40 years old.

This stat stands in contrast to broader credit union demographic trends. While the median age of US consumers is 38, the average credit union member is 53. Furthermore, a significant majority of Millennials (68%) prefer banking with large, well-known institutions. 

So, how is Union Credit bridging the gap between younger consumers and CUs?

“We address this by embedding competitive credit union offers into the digital spaces where younger generations already spend their time, bringing attention to often-overlooked credit unions and their competitive services and positioning them as modern and relevant alternatives for younger demographics,” shares Buerger.

According to him, convenience and simplicity are top priorities for Millennials and Gen Z when it comes to their financial experiences. With 80% of these groups shopping online, embedded finance has become a natural part of their lives — whether through merchants offering insurance, coffee shop apps enabling one-click payments, or department store-branded credit cards.

Buerger asserts that credit unions can benefit from this trend by adopting fintech and embedded finance solutions. By integrating financial products into the digital platforms popular with younger generations, credit unions can provide financial support precisely at consumer pain points.

“Forward-thinking credit unions that adopt this approach will find it easier to connect with and engage younger generations, making credit union membership more accessible and appealing,” notes Buerger.