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auto loan servicing

Auto loans create exciting lending opportunities for credit unions and their members. But managing an extensive loan portfolio requires a thorough understanding of payment processing, communications, collections, repossessions, title management, and other time-consuming tasks. Auto loan servicing for credit union portfolios streamlines and automates those tasks. When you hire a third-party loan servicing provider to go through these steps with you, your credit union will enjoy many benefits, including better portfolio performance. If you want to manage assets more effectively, consider hiring an auto loan servicing expert.

What Can the Experts Do for You?

Auto loan servicing companies provide a wide range of services to credit unions. The services vary, but they generally offer the following: 

  • Payment processing: It’s crucial to make the payment process as simple and convenient as possible for members. An auto loan servicing provider manages payment portals and tracks repayments throughout the loan period. The best companies also ensure that this process is streamlined and easy for your members to navigate. They provide tools to make the borrower happy, encouraging them to apply again for a loan. 
  • Member communications: If a member has questions or you need to contact them, the auto loan servicing provider can handle it. If a member misses a payment, the provider could immediately contact them via an automated call center or a company representative, depending on which communication services the provider offers and what the situation requires. They are also there to answer specific questions your members may have about their loan terms or repayment schedules. 
  • Delinquencies or nonpayments: The auto loan servicing provider can intervene quickly when an account becomes delinquent. They can also discuss options with the member to help them bring their account back into good standing and resolve the delinquency. 
  • Collections or repossessions: If a member falls behind on payments and a resolution cannot be reached, the auto loan servicing provider can start the collections or repossession process. Some companies manage their own collections departments. Full-service companies can also help your credit union repossess the vehicle. 
  • Title management at the end of the lease: The auto loan servicing provider’s services end when the vehicle’s lease term ends. However, before this happens, the provider can help you change the vehicle’s title, ensure all documents are in order, and check that the final repayment was processed correctly. 
  • End-to-end loan servicing: This combines all the services in the list above. The auto loan servicing provider assists with every aspect of the process, from when the lease is signed until the loan period ends. This enables credit unions to focus on other aspects of the business and ensure that their members are as happy as possible with their services.

While you could tackle all of these steps yourself, it may not be the best use of your time. The less time and resources you spend on these areas of the loan management process, the more funds you’ll have to expand your existing portfolio.

The Benefits of Auto Loan Servicing for Credit Union Portfolios

Outsourcing auto loan servicing to a third party can save you time and money—a significant benefit for credit unions that want to run a lean business. However, one of the greatest benefits of third-party auto loan servicing is its effect on your credit union’s auto loan portfolio

Benefits of Auto Loan Servicing for Credit Union Portfolios
Fewer Tasks To ManageOutsourcing the loan servicing process saves you time and money.
More Efficient Loan ManagementIndustry-leading auto loan servicing firms manage every step of the loan management process efficiently.
More Funds AvailableYou’ll have more money to expand your portfolio by having more active loans and accounts in good standing.
Greater Focus on Customer ServiceOutsourcing your auto loan servicing process gives your staff more time to focus on members.

When you hire a third party to manage the entire lending process from start to finish, you can grow your portfolio much faster. There are a few reasons why outsourced loan servicing can improve your portfolio:

  • Fewer tasks to manage: Auto loan servicing requires daily attention—sometimes even 24/7 service. Outsourcing the many tasks involved in the loan management process saves you time and money. 
  • Loans managed more efficiently: Auto loan servicing companies are dedicated to managing every step of the process as efficiently as possible. Some of these companies have highly effective loan management tools and experts on staff who have a great deal of experience with auto lending. You could see an improvement in payment processing times, which your members will likely appreciate. You may notice reduced delinquency rates due to early intervention, more effective communications, and more reliable loan risk management. These benefits could lead to better returns on investment for your credit union. 
  • More funds: Having more active loans and accounts in good standing means you’ll have more money to dedicate to expanding your portfolio. 
  • Extra time for customer service: Your members will also appreciate the extra care and attention they receive from your staff. Outsourcing your auto loan servicing process means your staff can focus entirely on members and address their needs. With this extra attention, members may be less likely to miss payments or more likely to lease a vehicle from you again after their leases have ended.

These are just a few benefits of outsourced auto loan servicing for credit unions. You may find more nuanced benefits when you hire a provider to handle this process.

Which Loan Servicing Experts Should You Hire?

The success of an auto loan servicing contract rests on expert banking and lending knowledge. The provider you hire should have experience managing credit union portfolios and be able to address your members’ needs competently. This is why you should seek out companies that provide a full range of services for credit unions, not just one or two steps of the process.

Partnering with an end-to-end auto loan servicing provider means you won’t have to pay multiple companies or hire more staff to manage your portfolio. Everything remains under one roof, which makes it easy to process payments, communicate with members, resolve delinquencies, and manage titles more effectively. With an experienced and knowledgeable lending expert guiding you through this process, you can focus on new opportunities—including expanding and improving your portfolio.

Revolutionize Your Auto Loan Servicing Experience

If you are looking for an industry-leading auto loan servicing provider that offers professional, white-glove service, look no further than defi SOLUTIONS. Our defi MANAGED SERVICING provides a single hub, digital interactions, and intelligent virtual assistants to bring everything together, simplifying auto loan servicing for credit union portfolios.

With defi MANAGED SERVICES, you can ramp up a new or beef up your existing back office operation with white-label, outsourcing services for:

  • Inbound call handling and fulfillment.
  • Return mail processing.
  • Payment processing.
  • Collateral management title work.
  • Accounting.
  • Cash management.
  • Back-office payment processing.
  • Default management (collections, bankruptcy, repossessions, recovery).
  • Lease maturity management.
  • Remarketing.

defi MANAGED SERVICING uses artificial intelligence (AI) and Contact Center as a Service to boost operations and processes related to auto loans, leases, and leased vehicle dispositions, reducing budgetary expenses and improving customer service. 

Getting Started

defi SOLUTIONS is redefining loan origination with end-to-end software solutions that enable lenders to automate, streamline, and deliver. Borrowers want a quick turnaround on their loan applications, and lenders want quick decisions that satisfy borrowers and hold up under scrutiny. With defi MANAGED SERVICING, lenders can improve operations and processes related to auto loan servicing, leases, and the disposition of leased vehicles, cutting expenses through automation and outsourcing services. For more information on what to look for when considering auto loan servicing for credit union portfolios and how we can help,  Contact our team today and learn how our cloud-based loan origination products can transform your business.

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