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.