Focus on the Auto Loan: Onsite Coverage
SAN JOSE, Calif. — Two vendors won attention at the Spring 2014 Finovate show with offerings focused on helping financial institutions deliver targeted automobile loan offers to consumers while they are at a dealership.
The key is tapping into the mobile phone’s ability to know where it is.
First up was CUneXus Solutions, a Santa Rosa, Calif.-based developer of a pre-screened lending tool that is deployed by several credit unions including the $2.2 billion Educational Employees FCU in Fresno, Calif., and the $1 billion Harborstone Credit Union in Lakewood, Wash.
CEO Dave Buerger explained that CUneXus’ tools presently are integrated with Digital Insight’s online banking platform and that user base is the company’s immediate focus. However, Buerger said in an interview with CUTimes, CUneXus has also developed a white label mobile offering that he said “is ready for launch.”
A sense is that the mobile offering will gain more users because they will have their smartphones with them as they visit dealer lots. And, while car shopping, they may receive a pre-approved loan offer tailored to their account profile.
“The goal,” Buerger said, “is to let the member know of offers that might be available to him or her.”
Loan applications “become unnecessary,” Buerger said. The credit union already knows what it needs to know to approve, or deny, a particular member’s application. And, he said, with CUneXus, loans can be approved 24/7, with need for little member input.
He added that it’s easy for members to opt out of receiving the offers.
Buerger acknowledged that to some the idea of a loan offer that requires just one click to accept might be scary.
“We encourage our customers to lend responsibly,” he said. “We do not anticipate problems resulting from the ease of accepting the loan. These offers will be closely screened before they are extended.”
Also presenting at Finovate was Menlo Park, Calif.-based Digital Insight, whose product manager Karishma Anand said the company already had automobile loan programs that send consumers targeted loan offers. However, the company is working on rolling out a mobile version.
“Financial institutions are very excited about this,” she said.
She added, in an interview with CUTimes, that Digital Insight is testing how consumers will respond. The company anticipates the response will be positive.
Anand also said Digital Insight anticipated response will be stronger for a mobile version, precisely because the consumers have a phone with them wherever they go.
The mobile version, she indicated, likely would have limited availability before the end of the year.