It’s not every day that a 24-year-old walks into a new car dealership and purchases a vehicle off the lot, but with the economy improving, employment rates rising and average incomes increasing more 18-34- year-olds – also known as millennials – are becoming interested in car ownership.
With a renewed interest in car ownership, credit unions have a unique opportunity to strike while the iron is hot and build their portfolio. Recently Annalisa Bluhm of General Motors’ Chevrolet told Forbes, “Millennials expect high-tech gadgetry and fuel economy, wrapped in a sleek and sporty look. And if they can’t find it new, then they will purchase it used.”
Despite this promising news, credit unions still place themselves at risk when dealing with credit challenged consumers. To mitigate the risk of losing revenue and help better serve their members, credit unions would be wise to implement a collateral management system (CMS) like Spireon’s LoanPlus CMS.
Spireon’s LoanPlus CMS connects credit unions with the tools and information they need to offer loans to higher risk members – such as millennials – while supporting these individuals as they build their credit. LoanPlus CMS utilizes a GPS tracking device placed in the vehicle that transmits location and data via a cellular network to secure servers which can be accessed via encrypted websites,allowing credit unions to monitor and control their portfolios.
Not only is implementing a CMS beneficial for credit unions, it’s also an added value for borrowers as the system helps members stay up to date on payments with automated payment reminders, improve credit, get better loan terms and lower insurance premiums.
For credit unions, LoanPlus CMS helps maximize resources, decrease loan delinquencies, maximize collateral management and increase overall loan portfolios.