Auto Finance Fintechs Shuffle Ranking

Note from the Publisher:  We learned today that there has been a rather major upset in the auto finance industry, and we find it fascinating and telling.  GMAC used to be the big boy in the industry and they subsequently became Ally Financial, and later Ally Bank.  Up until a few years ago, they were still the largest in the industry in auto financing but that has changed.  Turns out Wells Fargo Dealers Services now leads the pack, with a new #2 right behind it – CU Direct credit unions.  Ally is now #3 and Chase Auto Finance is #4.  What we found particularly interesting though is that CU Direct aggregates over 1,000 credit unions on its platform, and that is a major game changer.  Of particular note, is that the CU Direct platform is much easier to maneuver through and charges lower fees than the other options.  We’ve seen a lot of intersting advances from the credit union sector of late.  Those investing in the banking and payments sectors need to take heed and keep abreast of this side of the business as well…..and finance your next auto purchase through them also!

ONTARIO, Calif. – Nov. 29, 2016CU Direct, the nation’s leading lending technology and automotive solutions provider for credit unions, has helped its credit union partners collectively become the second largest auto financing source in the nation, surpassing Ally Bank. In aggregate, the more than 1,000 credit unions using CU Direct’s CUDL Lending Platform have been the nation’s third largest financing source the previous two years.

“Our goal has always been to help our partner credit unions and auto dealers create efficiencies and grow their overall market share,” explained Tony Boutelle, president and CEO of CU Direct. “We are proud to provide solutions that achieve these objectives for our credit unions, as illustrated by this most recent data. CU Direct remains dedicated to developing and improving technology solutions that drive our credit unions’ lending business and enable auto dealers to grow their bottom lines and cultivate customers for life. We could not be more excited for everyone who has contributed to this success.”

Consumers are turning more toward credit unions as a trusted source of auto loan financing. Today, auto lending makes up one third of credit unions’ total loan portfolio, and has the fastest rate of growth among all credit union portfolio segments, including first time mortgages, according to CU Direct data.  Credit unions as a whole continue to be a major force in the auto lending space, holding 22% of market share, according to AutoCount.

“Without CU Direct, we would not have experienced the success we’ve had in the auto lending marketplace” noted Paula Kenny, senior vice president lending/training at America First Credit Union.  “We fund approximately $100 million in auto loans a month through the indirect channel, as a direct result of our relationship with CU Direct.  By partnering with CU Direct, we’ve been able to build meaningful relationships with both franchise and independent dealerships, as well as open numerous new markets.”

Credit union lenders on the CUDL Platform are experiencing the highest loan origination growth rate (15.4 percent) of any auto lender among the top nine lenders in the nation, according to data from AutoCount, and CU Direct.

The company’s CUDL platform connects credit unions to more than 13,000 auto dealerships across the country. This enables dealerships to sell more cars faster and easier to the 42 millionpotential buyers who are members of CU Direct partner credit unions, as well as other qualified consumers.