If your bank or credit union is only lending to the top credit tiers, then many opportunities for interest income are passing you by. Open Lending’s Lenders Protection™ exists to get borrowers in the near and non-prime space into reliable vehicles with loan terms they can successfully manage. We also leverage strategic partnerships to increase loan volume for your institution.
AUTOPAY is a key partner in generating loan volume for near-prime borrowers. They are a marketplace auto finance provider with end-to-end service, connecting with consumers through a myriad of channels, both direct and white label. Together, we deliver a seamless workflow for lenders with an appetite for near-prime auto lending, via integrations with the lenders’ loan origination system.
Throughout 2020, as auto purchase finance has been either decreased or shut down entirely in certain areas, refinance became a focus for households who needed to stretch their dollars due to the negative economic impact from COVID-19. AUTOPAY helped borrowers with an average credit score of 662 lower their auto loan payments by nearly $100 per month, while lowering their interest rates 43% “A lot of folks out there are experiencing a cut in pay or hours, which can be very difficult. That $100 is very meaningful and deserved,” explains Jeff Hutcheson, AUTOPAY co-founder and CEO. Our refinance channel partners continue to be very effective at putting those households in touch with lenders who want to help.
“We often see loan mispricing or consumers improving their credit scores, so there’s an opportunity for them to save money by refinancing their vehicle,” Hutcheson continued. As companies such as Credit Karma or NerdWallet grow, they’re improving consumer awareness of the options to refinance their vehicle loans. “The refinance market grows every day, and people are always looking to save money, especially in economic downturns. Additionally, as technologies become more refined, like Open Lending and AUTOPAY, we’re making it easier and more seamless to engage in the refinance process.”
Combining Open Lending’s use of alternative data to score auto loan borrowers and their default insurance with the AUTOPAY program can be beneficial for all-sized banks, finance companies and credit unions. Any financial institution will be able to increase its auto loan volume and margins – two very significant issues right now for financial institutions.
“Our partnership helps credit unions and banks play a meaningful role in their communities,” Open Lending VP of Channel Partnership Julie Nielsen said, “reaching more consumers with imperfect credit scores and helping them to refinance as their credit improves. It’s a win-win where scrupulous lenders can earn greater margins while borrowers save on their monthly payments.”
Together, AUTOPAY and Open Lending help lenders reach more consumers and make more loans that save consumers money every month. Contact Open Lending to learn more!