Automation fintech Open Lending’s certified loan volume increased for the sixth consecutive quarter in Q1 as the automation fintech grew its credit union and bank line businesses, expanded its refinance channel partnerships, and extended its indirect lending limits.

Total certified loans, or “certs,” in Q1 increased 32% year over year and 3% sequentially to 43,944 loans, accounting for about $1.2 billion in auto originations, according to the fintech’s earnings presentation last week. Credit unions and banks made up 88% of the certs while OEM certifications accounted for 12% of the loans.

The fintech’s top 10 customers, excluding OEMs, increased their certification volume by 166% YoY, Chief Executive John Flynn said during the fintech’s earnings call, noting that Open Lending will “continue to focus on expanding our wallet share with our existing customers, which is a key initiative of ours in 2022.”

Used vehicles accounted for 94.4% of the company’s certified loans in Q1, up from 84.1% in Q1 2021, according to the presentation. New-vehicle certs fell to 5.6% of total certified loans, down from 15.9% during the same reporting period last year.

Open Lending, which provides automation lending services to auto lenders, also continued to build its refinancing program through the addition of two refinance channel partners, Flynn said. “Our value proposition for refinance will remain strong regardless of the rising rate environment due to the fact that credit unions’ cost of capital remains very low relative to other lenders.”

“Growth in refinance and adding the channel partners, and really focusing on the refi channel during these challenging times for inventory has been really good for our customers,” Chief Financial Officer Chuck Jehl said during the presentation.

The fintech launched its expanded 84-month term offerings in April after discussion in Q4 2021 of the need for longer terms, President and Chief Executive Ross Jessup said, noting that, “one-third of our applications received were asking for terms longer than our previous limits.”

Open Lending also signed an agreement with its fourth insurance partner, Arch Specialty Insurance Company, to provide credit default insurance policies for its lenders protection program, which allows financial institutions to expand into lower credit tiers, Jessup said. The program is also receiving some enhancements moving forward in order to “modernize” the experience for customers on the platform.

For the remainder of the year, the fintech will focus its efforts on hiring initiatives, following the addition of several key management roles filled in Q1, Flynn said. Open Lending has “made a key hire to support our OEM captive and large institution opportunities to ensure that we are well-positioned to grow and capture the flood of pent-up demand that will ultimately come when the inventory headwinds subside,” he added.

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Editor’s Note: This article first appeared in Bank Automation News’ sister site, Auto Finance News.