CREDIT UNION SOFTWARE FOR AUTO LOANS: THE ADVANTAGES OF COVERING THE LOCAL MARKET

Updated on 7/13/23

Credit unions possess unique advantages in the financial landscape, particularly within their local markets. These advantages include close ties to local industries, which contribute to economic growth and benefit their members, and the ability to offer higher deposit interest rates and lower loan rates. 

However, in today’s competitive market, credit unions must go beyond their past reputation and embrace innovative technologies to drive growth. One such technology that empowers credit unions is advanced software designed specifically for auto loans. This credit union software revolutionizes the lending process, improving efficiency, adapting to local market needs, and providing valuable insights into lending trends. In this article, we will explore the advantages of credit union software for auto loans and how it contributes to their ability to expand their local market share.

Reaching Borrowers Anywhere, Anytime

In today’s digital age, reaching borrowers through convenient and seamless experiences is crucial for credit unions. According to a study by Fiserv, a significant percentage of consumers are already comfortable completing loan applications via smartphones or mobile devices. To tap into this growing trend and expand lending opportunities, credit unions need to adopt a comprehensive digital strategy that supports both desktop and mobile platforms throughout the entire lending cycle.

Convenience is a top priority for modern consumers, and credit unions can leverage mobile loan applications to offer an entirely digital process. By capturing all necessary documents using the mobile device’s camera, responding with e-contracts, and enabling e-signatures, credit unions can make the loan and lease application process quick and effortless. Such streamlined mobile experiences open the door to greater lending opportunities and attract borrowers seeking convenience.

The digital experience should extend beyond the application phase and into loan servicing. Borrowers should have the ability to set up automated payments, access real-time account information, update their contact details, and communicate with servicing agents seamlessly.

Let Dealers Bring Borrowers to Your (Digital) Door

Local auto dealerships present an excellent avenue for credit unions to enhance lending opportunities. Just as credit unions enable digital loan applications for borrowers, they can extend the same capability to dealers. By providing dealers with online access to financial programs, rates, application submissions, and deal restructuring, credit unions facilitate a more efficient sales process and strengthen their local reputation.

Understand Local Lending Trends

Modern credit union software for auto loans offers integrated analytics as a powerful tool for improving lending outcomes. By leveraging this technology, lending professionals (no SQL or data science skills required) can access a wealth of information on loan activities and gain immediate insights into their business metrics. Here are some examples of how integrated analytics can enhance lending strategies:

	Harnessing Integrated Analytics for Local Lending Insight
Role	Questions to Ask about Lending
Marketing	Analyze loan applications to identify specific communities, vehicle types, or dealer sources with increased demand. Launch targeted marketing efforts in these areas, such as geo-targeted messaging, vehicle-specific ads, or promotions with local dealers.
Underwriting	Assess the percentage of declined auto loan applications and determine the reasons behind them. Modify credit policies to increase approval rates. Identify correlations between loan acceptance and response time to applications, as well as dealers associated with higher-than-average loan approvals.
Servicing	Identify characteristics of delinquent borrowers and proactively reach out to prevent delinquencies. Apply insights to identify at-risk borrowers and implement strategies to mitigate potential issues.

Advantages of Credit Union Software for Auto Loans: Reach, Loyalty, and Insight

Modern credit union software for auto loans offers several advantages that empower credit unions to thrive in the current lending market:

• Reaching More Borrowers: Digital loan and lease applications, coupled with integration with dealer systems, allow credit unions to reach a broader borrower base and improve accessibility.
• Building Customer Loyalty: Providing a seamless digital experience throughout the loan servicing phase helps foster customer loyalty and satisfaction.
• Actionable Insights: Integrated analytics provide lending professionals with valuable insights into the efficiency, profitability, and success of their lending strategies.

Credit unions looking to keep up with evolving market expectations should consider investing in a comprehensive lending platform that offers end-to-end digital services—from origination to servicing and final payoff.

Partner with defi SOLUTIONS for Credit Union Software Excellence

If you are looking for an industry-leading loan origination and servicing provider with expertise in credit union software for auto loans, look no further than defi SOLUTIONS. Our defi MANAGED SERVICING provides a single hub, digital interactions, and intelligent virtual assistants to bring everything together.

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.