Smartphone Loan App Driving Plenty of New Business
Smartphones and car loan applications, a match made in banker heaven.
An application maintained by CUNA Mutual Group is helping credit unions attract more auto loan applications than old-fashioned desktop and laptop computers, and those who are applying for loans via their phones are younger than traditional credit union members, according to an article posted on the Credit Unions Times web site.
The numbers are so attractive that the article quoted a CUNA Mutual executive saying that it plans to make a significant investment in smartphone technology in 2012.
The access afforded to consumers through their smartphones lends itself to being a natural conduit for auto loan applications. People can fill out an application wherever they have cell service, rather than having to wait to find an internet connection — wireless or otherwise — for their laptops and desktop computers. This flexibility allows potential car-buyers to apply for a loan the moment they find a vehicle they want to buy.
Of course, I don’t think that the industry has gone far enough yet. The loan application should be able to be processed via a smartphone, allowing the consumer to use his phone to actually pay for the car. That should be the next evolution in smartphone applications. If applying for a loan with a smartphone still ends up with the seller of the car being paid with a paper check, then the process still isn’t as efficient as it needs to be.
I don’t want to take anything away from CUNA or the credit unions using the smartphone application. The strong adoption and usage of the application is hopefully a great catalyst for lenders to invest more resources in identifying as many ways as possible to streamline the auto finance process. There are so many efficiencies to be had that could either increase loan origination totals or reduce expenses and overhead.
Smartphones can — and should — be used for more than just flinging cartoon birds at cartoon pigs. They are going to be the future of banking. And the sooner lenders realize that, the sooner they can start making more money.
