Capstone – Project

Indirect Lending Conversion

A Collaboration Between

Engagement Synopsis

TCU’s loan portfolio is more than 50% comprised of loans called Indirect Loans. An Indirect Loan is originated when an individual goes car shopping at a dealership and has not yet secured funding for the vehicle they want to purchase. They then sit with the dealer to talk about options for financing their purchase. During this conversation the dealership evaluates multiple lending institutions to see who can offer the individual financing. After considering offers from multiple financial institutions, TCU may be selected to fund the loan. This individual likely has no existing relationship with TCU. Since this loan is the individual’s introduction to TCU, we now can offer them other services to try to become their Primary Financial Institution by getting them to engage in other services with TCU. Our goal is to create a lifelong membership that mutually benefits both the member and TCU by offering products to help them achieve financial success.

Indirect Lending individuals are very difficult to get to convert from their current financial institution over to TCU due to the financial disruption it can cause in their life of switching things over to TCU (Direct deposits, auto payment of bills, setting up a new debit card, etc…) However, we have seen small success converting these individuals into being CORE (retail-engaged) members with more than just an Indirect Loan. With a large pool of ‘new indirect members’ being added each month (~21,000 annually), we don’t have the resources to on-board everyone. We are looking to create a predictive model that helps us identify who to target with additional calls/marketing to deepen their relationship within the credit union.

Company Information

CompanyTeachers Credit Union
HQIndiana
RevenueUnlisted
Employees500-2500
StageLarge Enterprise
Hiring PotentialN/A
Websitehttp://tcunet.com

Company Overview

More than eighty-five years ago, a small group of teachers pooled their savings to lend to others in need of credit. From these humble beginnings, TCU has grown to become Indiana's largest Credit Union with more than $3 billion in assets and 54 branches throughout the state of Indiana and Southwest Michigan. TCU offers traditional financial services including checking, savings, mortgages and credit cards, as well as non-traditional services such as investment, insurance and travel services. And while financial service is an important part of contributing to a community, TCU’s 85-year history shows a commitment to going beyond this service and working to build a better community. Philosophy: Unlike other financial institutions that use people to make money, TCU uses money to serve our members through new service centers and ATMs as well as new products and services. This commitment, in addition to providing superior member service, is carried out every day. From lending financial support to our members, whether they are longtime depositors -those who hold an "Honored Role" in our membership- or "new" members enrolled in our Treasure Chest Club for children age twelve and under, TCU strives to provide the kind of financial support and services its members need to help each other through their participation in a financial cooperative. While financial service is an important part of contributing to a community, TCU's history shows a commitment to going beyond this service and working to build a better community.

Industry Mentors

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Course Info & Engagement Details

SchoolMasters in Business Analytics (MSBA)
Engagement Format -
CourseMSBA Capstone (SPRING 2020)
LevelGraduate
Students Enrolled5 Students per Group (61 Enrolled in Program)
Meeting Day & TimeMonday OR Wednesday (3:00 - 4:50 PM ET)
Student Time Commitment8-15 Hours Per Week
Company Time Commitment2 Hours
Duration13.29 Weeks

Project Topics

Academic Mentors

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Assigned Students

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Program Timeline

Touchpoints & Assignments Due Date Submission

Key Milestones & Project Process

Project Resources

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