Discovery Conference Attendees Encouraged to Focus on Mobile Lending Optimization
MADISON, WI (October 15, 2014) – Rebounding vehicle sales are creating opportunities for credit unions to provide members with longer-term loans and to showcase their mobile lending capabilities, according to CUNA Mutual Group’s Steve Hoke.
Hoke, director of loan growth products, told Discovery Conference attendees Wednesday how they can position themselves to be more accessible to members looking for vehicle loans.
“It is very important to be available to members through mobile means and to make sure all of your channels, including face-to-face interactions, complement one another,” Hoke said.
Mobile devices play a significant role in the consumer’s car purchasing experience. Hoke said data from CUNA Mutual Group’s loanliner.com® loan application tool shows 25 percent of loan applications are done through a mobile device, and industry data shows 63 percent of consumers shop with a smartphone while on the dealer lot. This increase in mobile use means consumers are able to be well informed throughout the process of purchasing a car.
“It is not such a linear journey, but rather a feedback-based process,” Hoke said.
Members will look to their credit union for financial feedback during this time, and mobile-optimized lending sites are a key for successful communication with the member.
Hoke also said the financing duration has been increasing, with an average of 33.1 percent of car loans extending 72 months or longer. This trend in long-term loans is enhanced by an increase in subprime lending, as subprime loans represent approximately one-third of all new car loans, according to credit bureaus TransUnion and Experian.
“Credit unions need to help accommodate members with these long-term obligations.” Hoke said.
Educating members about resources such as loanliner.com, the AskAuto® app and current lending trends can prove to be beneficial to both credit unions and members in the long run.
Discovery Conference is an annual online event supported by CUNA Mutual Group that attracts a national and international credit union audience of more than 1,300 registered participants. This virtual, no-cost conference helps credit unions remain relevant to members, manage compliance risk and drive growth. Attendees view sessions, ask questions, visit booths and network with peers from the comfort of a computer without expense or time away from the office.
CUNA Mutual Group was founded in 1935 by credit union pioneers, and our commitment to their vision continues today. We offer insurance and protection for credit unions, employees and members; lending solutions and marketing programs; TruStage®-branded consumer insurance products; and investment and retirement services to help our customers succeed. More information is available on the company’s website at www.cunamutual.com
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wis.
CAPTION: Steve Hoke of CUNA Mutual Group shares insights on vehicle lending trends during the company’s Discovery Conference on Wednesday.