Indirect onboarding for credit unions: A service-first approach

Indirect onboarding for new members has long been a challenge for the credit union industry. The goal is not just to onboard new indirect members but to convert them into “real members” — individuals with whom the credit union can build lasting relationships and offer a suite of products and services.

This transformation is crucial for credit unions aiming to enhance member engagement and foster loyalty in an increasingly competitive financial landscape.

What role do CRM and automation play in indirect onboarding?

Credit unions are increasingly leveraging advanced tools, such as customer relationship management (CRM) systems and automation, to streamline the onboarding process for indirect members. This approach helps better manage new member onboarding, capture key insights for targeted marketing and reduce risks such as first-payment defaults and fraud.

Additionally, credit unions are enhancing member engagement by streamlining the onboarding process and fostering stronger relationships with new members. 

Credit unions are now expected to adopt Robotic Process Automation (RPA) to streamline repetitive tasks and enhance operational efficiency, including member onboarding. This trend is part of a broader focus on data security and the expansion of business services to better support members and maintain competitive differentiation.

However, some credit unions have scaled back their efforts to attract new members through indirect lending, focusing instead on core members, as they have been unsuccessful in turning these new members into core members.   

The integration of CRM and RPA offers a powerful solution to enhance the conversion of indirect members through onboarding. Combining the power of CRM and RPA drives efficiency in process automation and equips users to reach out to new members. 

Additionally, leveraging these solutions together allows for personalized communication and tailored solutions to make onboarding more engaging and effective. This personalized approach helps to build a strong rapport with new members, making them more receptive to future cross-selling

Why early cross‑selling fails in indirect lending onboarding

However, it’s crucial to rethink our onboarding approach. From a consumer’s perspective, being immediately targeted for cross-selling can feel intrusive — like proposing marriage before even going on a date. As new members, their primary concern is obtaining a smooth financing process, especially after securing vehicle financing. Building trust and familiarity should precede any attempts at cross-selling, fostering a relationship that naturally leads to exploring additional products and services. opportunities.

Why a service‑first indirect onboarding strategy builds member trust

From the FI perspective, onboarding focused on service first can yield results that will positively impact other areas, such as marketing and collections. If your institution hasn’t delved into CRM yet, onboarding indirect members is a great first-use case. You can start with a limited number of user licenses and set up to prove the potential ROI, gaining buy-in to expand organization-wide in the future.

If you already have a CRM but aren’t leveraging it for indirect onboarding, it might be time to evaluate whether your current CRM is best suited for customizing use cases, like call lists that leverage your FI data for outbound calling.

Focusing on service first allows FIs to reduce first-payment defaults, detect fraud and identify potential collection issues. New members sometimes aren’t the drivers of the vehicle and don’t feel responsible for the loan, since they were straw deals.

As a result, institutions can help ensure new members understand the importance of having correct insurance information on file to avoid collateral protection insurance, which, once applied to a loan, creates a negative experience and makes it unlikely to win that member over to additional services.

Because car dealers are generally not great at collecting email addresses for the FI, a service call allows an institution to collect this valuable contact data for its marketing team.

The value of building trust

Building on a great first experience with a service call to new indirect members gives them confidence that their loan is set up properly.  

The adage, “people don’t care how much you know until they know how much you care,” is important to keep in mind. Approaching indirect onboarding with this attitude in the short term can yield long-term results.

Consider switching the goal of your initial onboarding contact. If a cross-sell happens during the call, that’s great, but it’s best not to make it a priority.

Integrating CRM and RPA into the onboarding process offers credit unions an exceptional opportunity to transform indirect members into loyal, engaged members.

By focusing on service first and building trust, credit unions can create a positive onboarding experience that sets the stage for long-term relationships and cross-selling opportunities.

How Wipfli can help

As the financial landscape continues to evolve, adopting advanced tools and rethinking your onboarding approach will be key to staying competitive and meeting the needs of new members. Strengthen indirect onboarding with Wipfli’s CRM and automation expertise.

Be sure to tune in to our webinar to see how CRM and automation can improve efficiency and onboarding for indirect lending members.   Our specialists can help credit unions turn indirect borrowers into loyal members. Contact us to find out how we can support your institution.

Improve your position with indirect members

Read more

• 2026 research report: The state of the credit union industry
• Webinar: How to onboard indirect lending members
• E-book: How credit unions can identify and implement new membership growth strategies