Auto Lending: Players Vie for Same Members
Unlike mortgages and business loans, for many financial institutions, including credit unions, auto loans are probably the least likely to have a flood of new competitors entering the space.
That may change as members seek out more ways to make the car shopping experience faster, more convenient and of course, have the best deals tied in. Throw in on-the-go accessibility either through mobile or online channels and the window opens even wider for more players to give credit unions a run for the financing finish line.
“The lending arena is continuously evolving and anyone can make a profit on unmet consumer needs,” he said. “To set the stage, A paper lending has become a pure commodity. Whoever’s doing lending right can live on longer margins.”
Years ago, Stanford FCU had an indirect lending program, Thornton said. The effort didn’t produce fruit.