How does a newer, perhaps smaller less-established auto lender compete with the likes of Wells Fargo, Capital One or Santander Consumer USA?
Getting and securing business is all about the people you bring on to run the new company, according to a number of new auto lenders.
One smaller bank in the northeast that started an auto-lending unit around two years ago confirmed that real success depends in great part on the experience of the people running the show. A representative of the bank said it’s all about finding and training a team of execs who are already well seasoned in the auto lending space. They also said it’s essential to leverage the existing relationships that each of those execs bring to the company.
That way, even though the unit might essentially be a startup, it’s not the same as starting the business from scratch in the building out of its operation.
Specifically, hiring seasoned professionals that have strong existing industry relationships offers a one up for a new dealer finance and in-market sales team. The existing exec relationships can be exploited in a way that allows for more seamless expasnion and saturation of existing market territory.
Also, any bank or credit union that’s cranking up a new or dormant auto-lending unit should always think of ways to efficiently tap into the credit business it’s already running, including the mortgage and credit card side of the business as well.
No matter the company structure, be it a bank or finance company, a well-seasoned management team that’s steeped in the auto-lending business will help lay a stronger foundation for smart future strategic growth.
