Who Says ‘Relationship’ Doesn’t Pay?
The cliche that relationships matter in auto finance apparently is not just true; it apparently has real value.
Buried in Huntington Bancshares’s recent second quarter 2013 earnings report was this data point: the bank’s buy rates are 20 to 50 basis points higher “compared with other banks competing in the prime space.”
While we aren’t certain of where this data comes from, Huntington credits its pricing power to the fact that it was the “No. 1 bank in the US in dealer satisfaction.”
“That deep relationship adds value,” according to Huntington documents. To which relationship is Huntington referring? To Huntington’s financial ties with dealerships through the following products:
- Floorplan
- Real estate
- Core deposits
- Treasury management; and
- Private banking.
Perhaps “relationships” might be the wrong word here. “Leverage” sounds more accurate, and Huntington’s got it.
