JPMorgan to offer car loans online through AutoFi
JPMorgan Chase will soon start offering auto loans online through a partnership with the fintech startup AutoFi.
The company announced early Thursday that it will deliver its financing terms through AutoFi’s online platform as part of a broader effort to speed up and improve the car-buying experience for consumers.
JPMorgan Chase is the first national bank to partner with AutoFi, a 3-year-old firm that works through car dealers to connect lenders with buyers. AutoFi has a similar partnership with Ford Motor Credit, which has integrated AutoFi’s platform into its website. Ford Motor Credit is also an investor in the San Francisco-based AutoFi.
The partnership with AutoFi is one of several JPMorgan Chase has struck with fintechs in recent years. It also offers small-business loans through OnDeck and recently acquired WePay, a startup that offers electronic payments capabilities to small businesses.
JPMorgan Chase said that moved to fully automate its auto lending after its research found that more than half of would-be car buyers want to purchase and finance vehicles online.
“AutoFi helps dealers provide a fast and easy digital car-buying experience that consumers want,” Mark O’Donovan, the CEO of Chase Auto Finance, said in a news release. “Our customers are our top priority. ... We want to provide them with the best financial experience whether they are in a dealership or online.”
JPMorgan Chase is one of the nation’s largest auto lenders, with roughly $50 billion of loans outstanding as of Sept. 30, according to the Federal Deposit Insurance Corp.
“Our partnership brings tremendous value to the dealer community leveraging the breadth of Chase’s full spectrum lending and automated capabilities to deliver a comprehensive digital retailing solution to dealers across the nation,” said Kevin Singerman, AutoFi's CEO.