Persuading Members to Use Your Online Auto Loan Application May Be Easier Than You Think

Given the significant numbers of members going online for information related to their auto purchase, it makes sense for credit unions to try to convince some of them to apply online. Why? When well designed, an online application can benefit the credit union by:
  • Enhancing your ability (and image) to be a convenient financing center for members, allowing 24 hour access to credit union loan services,
  • Helping you meet the needs of members who prefer to complete all of their transactions online, and may go elsewhere to find this capability, and
  • Increasing your cross-selling capabilities, by offering insurance coverage at the time of the financing decision.

 
 

Given the significant numbers of members going online for information related to their auto purchase, it makes sense for credit unions to try to convince some of them to apply online. Why? When well designed, an online application can benefit the credit union by:

  • Enhancing your ability (and image) to be a convenient financing center for members, allowing 24 hour access to credit union loan services,
  • Helping you meet the needs of members who prefer to complete all of their transactions online, and may go elsewhere to find this capability, and
  • Increasing your cross-selling capabilities, by offering insurance coverage at the time of the financing decision.

In the long run, an effective online application will enable you to better compete for loans against other local financial institutions. Even allowing members to access your online application to print or submit through other channels will make the financing process more transparent and more user-friendly for members.

In our recent Survey Consortium research on the auto-buying habits of online members, member feedback revealed that although only one-fourth had gone online for their current loan application at their credit union, many more could be convinced to try it if they had better information about the process. The chart below shows that members are already willing to go outside the dealership and use the credit union's other options for applying for loans.

 

 

 

July 21, 2003


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