Origence, the leading lending technology solutions provider for credit unions, has partnered with Catalyst to deliver enhanced payment capabilities through the FedNow® Service. Credit unions leveraging Origence’s subsidiary, FI Connect, can now utilize the FedNow Service via Catalyst, enabling instant loan funding and significantly accelerating transaction speed and efficiency.

The FedNow Service is a new instant payment infrastructure developed by the Federal Reserve in 2023 that allows eligible depository institutions across the U.S. to provide instant payment services. Beginning this September, through the partnership, Origence’s participating FI Connect credit unions will use the FedNow service through Catalyst to fund loans instantly. With faster funding, FI Connect better positions credit unions as a more reliable financing partner for embedded financing opportunities. 

As payment technology has advanced, consumers and businesses alike are expecting to receive funds in minutes instead of days. FI Connect began offering embedded financing in 2023 on electric vehicle purchases through the Tesla website using ACH transfers. With real-time loan funding, FI Connect better positions credit unions as an even stronger financing partner for embedded financing opportunities where payment speed is critical. 

“As a pioneer in indirect lending, Origence is always looking for ways to deliver more value to credit unions and help them compete in the fast-moving consumer lending space,” said Neetu Bhagat, CFO at Origence. “Through our partnership with Catalyst, we are giving credit unions a distinct advantage as preferred lenders with our instant loan funding.”

The real-time funding solution developed by Catalyst provides Origence and credit unions with a seamless method for instant loan funding. Catalyst’s payment systems and FedNow Service connection deliver the speed required by Tesla alongside the leading loan origination platform from Origence.

“Not only are loans funded in record time, but Catalyst’s custom-built ‘lights out’ loan funding engine enables credit unions to fund loan activity automatically at any time of the day or night with no staff interaction required,” stated Brad Ganey, Chief Operating Officer for Catalyst. “Our loan funding solution for Origence removes friction in the system and enables credit unions of all sizes to compete for, and win, new loans. What’s more, the groundwork Origence and Catalyst have laid for FI Connect will serve as a foundation for much more to come, enabling credit unions to participate in new and untapped markets in ways that benefit current and attract prospective members.”

“In the current economic climate, funding speed is a critical component of service excellence,” said Bhagat, “We expect that instant payments will soon become the norm for auto loans and other consumer purchases, creating a compelling opportunity for those credit unions who are on the leading edge of this payment revolution.”