U.S. Bank teams up with fintech on digital auto lending
U.S. Bank is partnering with the startup AutoGravity to offer customers the ability to digitally apply for an automobile loan and receive a decision in minutes.
The Minneapolis-based bank created a new platform in conjunction with the fintech on its website, USBank.com, designed to offer its customers a simplified, streamlined loan application and quick decisioning process.
With the tool, users can pick the desired car and select a dealership online, apply for a preapproval for a U.S. Bank loan online and, if approved, close the loan at the dealership and drive off in their new car, the bank said.
“We want our customers — both car buyers and dealerships — to have the best, most seamless experience possible,” John Hyatt, executive vice president, consumer dealer services for U.S. Bank, said in a press release. “This technology helps us get the buyer in the driver’s seat sooner and brings pre-approved customers to the dealership.”
U.S. Bank is the latest financial institution to partner with a fintech on auto lending; earlier this year JPMorgan Chase announced a partnership with the startup AutoFi as part of a broader effort to speed up and improve the car-buying experience for consumers. JPMorgan Chase said it made the move after its research found more than half of would-be car buyers want to purchase and finance vehicles online.
Banks aren’t alone in developing online car loan offerings for customers. Last year Ford Motor Credit also announced a partnership with AutoFi to enable shoppers to buy vehicles and finance their purchases online.
U.S. Bank’s digital loan platform is currently available only through the bank’s website; it will expand to the bank’s mobile app and be available to used-car buyers and co-applicants in the coming months.