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CREDIT UNION SOFTWARE: THE ADVANTAGE TO COVERING THE LOCAL AUTO LOAN MARKET

The defi Team Auto Dealers, auto loan origination software, Credit Unions, Customer Summit 2015, defi ANALYTICS, defi CONNECT, defi INSIGHT, defi LOS, defi SERVICING, Digital Loan Documents, Digitalization, Loan Management, Loan Origination Software, Reporting & Analytics, Servicing Systems

no-contact loan

Credit unions boost their ability to grow their auto loan and lease business with software designed to: 

  • Improve the efficiency of all phases of the lending process significantly. 
  • Adapt to the needs of the local market. 
  • Provide detailed insight into past and nascent lending trends.

Credit unions enjoy local advantages in comparison to national financial institutions. Whether it’s a tie-in with a major local industry that brought economic growth to the region and credit union members, or the higher interest on deposits and lower rates on loans, credit unions already have inherent advantages. But in today’s market, credit unions can’t just rely on past reputation to generate growth. More and more, innovative technologies directly translate into credit union software advantages that help grow local market share.

Reach Borrowers Whenever, Wherever

In 2019, Fiserv found that 41% of consumers were already “somewhat or very comfortable completing loan applications via a smartphone or mobile device.” That number has grown significantly in 2020 as consumers were forced to conduct more business transactions remotely. 

The moral of the story—lenders need to have a digital strategy supporting desktops and mobile devices if they want to reach borrowers. And your mobile strategy needs to cover the full lending cycle, from origination through servicing to the final payment. 

Show borrowers available financing programs, rates, and
program parameters via desktop or mobile devices.

In today’s world, convenience is a top priority for most consumers. When a member of your community finds the right vehicle and is looking for a loan or lease, nothing could be more convenient than being able to immediately apply. Mobile loan applications should support an entirely digital process, eliminating any paperwork by capturing all required documents via the mobile device’s camera, responding with an e-contract, and allowing e-signatures to seal the deal. When you make loan and lease applications this easy, you open the door to greater lending opportunities.

The digital experience should also extend to the servicing phase, with borrowers able to set up automated payments, get real-time account information, update contact information, and communicate with servicing agents. 

Give borrowers secure, real-time access to relevant loan or lease information.

Let Dealers Bring Borrowers to Your (Digital) Door

Local auto dealers present a great avenue in which to increase lending opportunities. Just as you enable digital loan applications for borrowers, you can extend that capability to dealers. By giving dealers the online ability to shop your financial programs and rates, submit applications, or restructure existing deals, you facilitate a more efficient sales process and enhance your local reputation.

Give dealers access to rates and programs specific to the borrower and collateral.

Understand Local Lending Trends

With modern credit union software, the advantage of integrated analytics can be one of the most powerful means of improving your lending outcomes. Modern loan and lease software generate a wealth of information regarding loan activities. When lending professionals—marketing, underwriting, and servicing—can mine data and create reports on their own (no SQL or data science skills required), they gain immediate insight into the metrics that characterize their business. The following examples showcase the value of integrated analytics:

Role Analyses That Can Help Corner the Local Auto Loan Market
MarketingHave loan applications shown an increase regarding specific communities, types of vehicles, or dealer sources? If so, focus additional market efforts on these areas, such as geo-targeted messaging, vehicle-specific ads, or promotions with local dealers.
Underwriting What percentage of auto loan applications are declined and what are the reasons? Can credit policies be modified to increase the number of approvals? Is there a correlation between loan acceptance and response time to auto loan application submissions? Which local dealers correlate with the higher than average loan approvals? 
Servicing What are the characteristics of borrowers who are delinquent? Can we apply this insight to identify borrowers who are likely to become delinquent and reach out to them to proactively prevent delinquencies? 

Credit Union Software Advantages: Reach, Loyalty, and Insight 

Lending software has advanced significantly in the past decade to give credit unions more opportunities than ever to increase lending opportunities. In particular, modern credit union software advantages with regard to auto loans and leases:

  • Help reach a larger number of borrowers via the convenience of digital loan or lease applications and integration with dealer systems. 
  • Build customer loyalty by providing a completely digital experience throughout the servicing phase. 
  • Give lending professionals actionable insights into the efficiency and profitability of their areas of responsibility and current lending strategy. 

Credit unions challenged to keep up with the expectations of the current auto lending market should seriously consider an investment in a lending platform that provides the full spectrum of digital services—from origination and servicing to final payoff. 

Getting Started

defi SOLUTIONS’ online defi CONNECT product brings together borrowers and lenders. defi CONNECT integrates with defi’s flexible, scalable, end-to-end platform that includes loan and lease originations and servicing systems, as well as technology-enabled business process outsourcing services. Defi has the tools and teams to understand the unique lending needs of credit unions. Take the first step in realizing the advantages of modern credit union software. Contact our team today or register for a demo.

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