LAS VEGAS-Credit Union Direct Lending (CUDL) has introduced a new SMART Approval program.
Tony Boutelle, CUDL's president and CEO, told Credit Union Journal SMART Approval is a widget that will sit on a credit union's website with "Get pre-approved" as a call to action.
"We have done a really good job of creating a system that is efficient in originating loans at the dealership, but this new program allows credit unions to involve their current members more," said Boutelle during CUDL's annual Auto & Mortgage Lending Symposium here, which it co-hosted with Prime Alliance. "We are trying to get credit unions focused on reaching their members as normal consumers. A J.D. Power survey found 83% of people who buy a car expect to take care of financing at the dealer. A small number come with pre-approvals, but half of those get flipped to other financing."
According to CUDL, SMART Approval enables credit unions to provide their members with a simple and convenient online pre-approval application and loan decision through the credit union's website that streamlines the overall loan process and eliminates member inconvenience of waiting for a loan decision at the dealership.
"Members no longer have to fill out a loan application at the dealer, which skips a lot of the car-buying process and makes for a better member experience," Boutelle said.
The release of SMART Approval is a continuation of CUDL's efforts to help credit unions get more value from indirect lending, Boutelle said. These include AutoSmart, a service that allows people to shop for cars online and, if "used properly," 90% of the transaction can be done in advance of a visit to an auto lot.
"Four or five years ago, 95% of indirect auto loans were new members signing up at the dealership; today just 68% are new members," he said. "AutoSmart has helped educate members that credit union financing is available at the dealership. We've had the same strategy for a year and a half now-getting members engaged and thinking of credit unions as a financing option for cars. If the credit union is not available at the dealership for a loan, it has only a 17% chance of getting the loan."
