As the economy starts to recover, more credit-challenged consumers are looking to get behind the wheel. In fact, in 2013, lenders are expected to start loosening their credit standards to help maintain growth in the auto finance market, according to DBRS, a credit rating research firm, which has contributed to the resurgence of subprime auto loans. According to a recent study by Experian, there has been an 18 percent increase in subprime financing for new vehicle purchases and close to a 40 percent increase in deep subprime lending to customers with 600 FICO scores and lower.
Not only has there been a rebirth of subprime auto loans, but there’s also a big opportunity for credit unions to better serve the underserved, unbanked population with the right automotive financing program. As stated in a recent CUNA e-Scan report, in the United States there are 68 million adults who are either unbanked or under-banked.
As a credit union, you may be focused on expanding loan portfolios, retaining and growing members, improving collections productivity, helping members stay on track and strengthening member relationships. With all of these factors in play you may be asking yourself, “How can I better serve my credit-challenged members and still reach my business objectives?” Well, with a collateral management system (CMS), you can do both.
There are a number of long-term advantages for credit unions that integrate a CMS into their overall financial strategy. By using Spireon’s LoanPlus CMS system, credit unions can expand their portfolios to include more members, improve member payment behaviors and optimize the collections process. How? Through Global Positioning System (GPS) and cellular technologies, combined with an award winning technology platform and easy to use web applications, credit unions can not only say yes to more members, but they keep track of their assets and secure vehicles. This also helps optimize the collections process. In addition, automated payment reminders help improve payment behavior, keep members on track and reduce loan defaults.
With Spireon’s LoanPlus CMS, credit unions benefit from the industry’s leading GPS tracking system that integrates into existing loan portfolio systems making it easier to manage and track your higher risk loans. It also provides lenders with an intuitive web based application that includes rich features such as:
- Interactive, sophisticated mapping
- Comprehensive and customizable reports
- Data security and access features
- Customizable geo-fences
- Full turnkey installation services
- Dedicated Customer Service team
Are you a credit union looking to say yes to more members and secure your assets? Learn more about Spireon’s LoanPlus CMS by visiting our website or calling an account representative today at 1-877-897-7587.