By John Flynn, Open Lending CEO & Chairman
What was once a lofty goal of delivering a more streamlined auto lending experience, has become table stakes for financial institutions in this post-pandemic world.
Traditional car dealership marketing models were forced to shift as car buyers headed online, seeking new ways to purchase a car from the safety of their home. An Accenture Technology Vision 2020 report found that the pandemic pushed the timetable for digital lending changes, which banks and credit unions expected to take years, to months. Consumers who are now able to do everything from ordering groceries to having dealers pick up their cars for service with one tap on their mobile device expect the lending experience to be just as simple. According to the report, consumers are looking for financial partners who are willing to work with them to help get the loans they need. Open Lending can help get you to that experience. Ask us how!
Credit Union Times’ analysis of NCUA data found that overall car loan balances are trending upward. According to the article, among those with less than $1 billion in assets, total car loan balances were flat from 2019’s second quarter to 2020’s second quarter. They grew 1.3% for credit unions with $1 billion to less than $4 billion in assets, and 3.8% for the largest credit unions. In addition, new car loan balances decreased for each class, and used car loans grew for each.
A Financial Brand 2020 Digital Banking Report found that only 66% of financial institutions allowed consumers to apply for a loan completely online and just 46% had mobile loan
It has never been more important for credit unions to deliver on consumer experience expectations and adapt their marketing plans accordingly. As you explore new communication channels don’t overlook ramping up existing channels such as email marketing.
Believe it or not, in this environment where consumers are stressed about their finances, email marketing done effectively can help grow your loan portfolio. Review member data collected over the past few months to identify lending needs and how your credit union has helped members. Look for more opportunities to incorporate email to drive results, like:
Making your marketing more interactive
Collecting the right data to deliver personalized, empathetic, consumer-centric messaging and make compassionate lending decisions
Reassuring anxious members by telling them what you can do for them right now
Incorporating a mix of promotional and financial wellness content they need
Educating consumers on what tools and services are available to them and how your bank or credit union is addressing common lending pain points
Helping members save time and money in their car buying or refinancing journey
Open Lending makes it easy for banks and credit unions to say ‘yes’ to more loans, quickly and easily. We leverage data to provide rapid decisions – in a few seconds! – based on your bank or credit union’s underwriting criteria, avoiding embarrassingly long wait times for consumers whose credit may not be perfect while also meeting the demands of your indirect auto loan dealer-partners.
Building awareness that your credit union is the trusted partner members have been searching for, will drive loyalty and increase engagement for years to come.