Lenders will continue to seek fintech partners to increase production and facilitate new product opportunities in 2018, several executives told Auto Finance News, however, banks and credit unions in particular are scouting for “dealer-centric” or “hybrid” platforms.
“If you look at technology, we are always looking for internal partners that can bring us better, faster, and cheaper solutions,” John Hyatt, U.S. Bank’s executive vice president of dealer services, said at the 2017 Auto Finance Summit last month. “We are focused on dealer-centric platforms. AutoGravity and others in the market that have a specific model that helps facilitate the sale, do not dictate to the dealer their profits; we are sensitive to getting into partnerships that would create tension.”
Regions Dealer Financial Services is interested in finding a fintech provider “that would either open a new distribution channel for us or maybe even a new vertical” that’s beneficial for dealers, said Tom Lazenby, senior vice president and head of dealer financial services and direct auto lending.
Huntington Bank is looking for something that’s “not direct and not indirect, but a hybrid — where we can engage the customer, and the dealer can engage the customer,” said Chuck Gucwa, Huntington’s senior vice president of auto and regional area director.
