Bank of America’s direct-to-consumer online portal accounted for 56% of direct auto loan originations, according to the bank’s fourth-quarter earnings, released today.
Direct auto loan volume has ramped up as the bank keeps “investing heavily” in its online platform, Chief Financial Officer Paul Donofrio said during the earnings call, noting that more than 2 million vehicles are now available through the direct lending program.
Moreover, 61% of direct auto applications came from the digital platform, either on a desktop or smartphone, up from 54% back in February 2019. Additionally, Bank of America’s AI-driven banking assistant, Erica, has experienced an increase in users, surpassing the 10 million mark. In February, that number was around 6 million.
As direct lending gains traction, the big bank’s auto loan portfolio has increased to $51 billion, a 2% increase compared with the prior-year period.
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