Customer Profile

Sector: Banking
Industry: Regional Banks
Assets: $154.0 Million

Illiana Financial is a cooperative financial institution with $154 million in assets and four offices throughout Illinois. Deposit products include checking, savings, money market accounts, and certificates of deposit. Illiana also offers home, auto, business loans, credit cards, and individual retirement accounts.

Business Situation

One of the institution’s loan products, indirect lending, enables third-party merchants to originate loans at the point of sale. The program has led to rapid growth which changed the structure and risk profile of the balance sheet for the institution. Credit risk is controlled in part by a dealer reserve account that provides for charging back non-performing loans to the merchant. The institution needed a system to credit the reserve account for the premium due at the time the principal of the loan is funded. The system also needed to compute when funds are disbursed from the dealer reserve account on a monthly basis net of any unpaid interest resulting from borrower prepayments or defaults on other non-performing loans.


Dealer Reserve System

Illiana Financial selected Help4Access to develop their Dealer Reserve System. The system provides the credit union with the ability to reconcile loan balances against the core processing system. The core processing system, XP2 from Fiserv unit XP Systems, provides an IBM DB2 database from which MSAccess can extract the necessary data. Delinquent loans are flagged by exception reports and dealer reserve accounts are updated at the end of each month.