Half of the direct loans Bank of America made in the first quarter were originated via the online direct lending portal the bank debuted a year ago, Chief Financial Officer Paul Donofrio said during an earnings call Monday.
Last quarter, 67,000 customers — twice as many as in the prior quarter — turned to the online tool to get approved for their loans before going to the dealership, he said. Auto Finance News estimates that about $2 billion of loans were originated via the direct lending platform last quarter, based on Big Wheels 2018 data.
Consumers can see live inventory online at 2,000 participating dealerships, Chief Executive Brian Moynihan said on the call. Growth in direct lending volume contributed to a 2% year-over-year increase — to $52 billion — in Bank of America’s auto loan portfolio last quarter, according to the earnings report.
Meanwhile, the volume of nonperforming direct and indirect loans (including some non-auto products) tripled, to $46 million in the first quarter, from $14 million in the prior-year period.
Net charge-offs rose 20% to $58 million, but still accounted for just 0.26% of the auto loan portfolio.
