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
- 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.