SWBC launches MPOWER+ Vehicle Return Protection to empower credit union members in their next vehicle purchase
SAN ANTONIO, TX (June 16, 2020) — Today, SWBC announced the launch of MPOWER+ Vehicle Return Protection, provided by nationally award-winning consumer protection product provider, EFG Companies. This vehicle return program is based on the product behind the award-winning Hyundai Assurance Program from 2008. This automotive debt-protection product cancels up to $7,500 of negative equity associated with a vehicle purchase, giving credit union members the freedom to walk away from negative equity should a qualifying life event occur such as involuntary unemployment.
Due to the COVID-19 pandemic, the global economy is experiencing the largest downturn since the Great Depression. Total unemployment claims have soared over the past eight weeks to 36.5 million. And, according to the Federal Reserve’s Report on Economic Well-Being of U.S. Households, released May 14, 2020:
- Among those surveyed who experienced a job loss or hours reduction, 48 percent were “finding it difficult to get by” or were “just getting by.”
- Prior to the pandemic, 3 in 10 adults in 2019 said they could not cover three months of expenses using their savings or borrowing in the case of a job loss, indicating that they were not prepared for the current financial challenges.
“Successful credit unions have always been defined by how they serve and support their members,” said Mike Moore, SVP of Sales for SWBC’s Financial Institution Group. “This is no different in times of crisis. In fact, member service becomes that much more important. It’s for that reason SWBC partnered with EFG Companies to bring to market MPOWER+ Vehicle Return Protection.”
This vehicle return protection, which is complimentary on auto loans financed by credit unions authorized to sell MPOWER+, allows customers – regardless of age, health, or vehicle type – the option to return their vehicle with no impact to their credit rating in the event any of these unforeseen life events occur:
- Involuntary unemployment
- Physical disability
- Loss of driver’s license due to medical impairment
- Self-employment personal bankruptcy
- Accidental death
- International employment transfer
SWBC has already launched MPOWER+ Vehicle Return Protection, through the Unity® application, in credit unions across the United States. “The credit unions we’ve been in conversations with see this stand-alone vehicle return protection as a true point of differentiation and a demonstrated avenue for revenue growth,” said Moore.
MPOWER+ Vehicle Return Protection gives credit unions an effective response to declining consumer confidence by:
- Giving credit union members the motivation and confidence to purchase their next vehicle, impacting auto loan volume immediately
- Increasing member satisfaction, driving repeat business
- Preserving their members’ credit for future purchases
In addition to increasing market presence and auto loan volume by offering MPOWER+ Vehicle Return Protection complimentary to members, credit unions may potentially increase their non-interest income with upgrade options that:
- Extend coverage for the life of the loan up to 84 months
- Provide payment relief for up to 3 months, with the option to keep the vehicle
“MPOWER+ Vehicle Return Protection gives credit unions an invaluable market intangible – member peace of mind knowing the credit union has their back,” said Moore. “Providing this level of extremely relevant protection and support regarding member finances can directly impact their members’ daily lives, and further cement their relationship with the credit union. This sets credit unions up to capture more auto loans now and increase market share more quickly once the economy turns back on.”
As a diversified financial services company, SWBC provides financial institutions, businesses, and individuals a wide range of services, including insurance, mortgages, wealth management, employee benefits, and more. Headquartered in San Antonio, Texas, SWBC has partners and divisions across all 50 states and manages business around the world. No matter how wide its reach, SWBC always listens to its customers’ needs, analyzes their current situations, and recommends customized solutions. For more information about our innovative approach to personalized service, visit SWBC’s website at swbc.com.