Auto loans are on the rise, and more people are choosing to go to their credit unions to get one. All of this sounds like good news for credit unions. However, while credit unions are giving out more car loans, so are other lenders in the marketplace. The volume of auto loans taken out with credit unions is up by more than 50 percent since 2011. However, their market share is not growing any faster than the volume of loans taken out with other lenders. This means that credit unions still need to convince potential members of the many benefits that they can provide. Card services for credit unions can make a huge difference in this respect.
Credit unions must make strategic changes in their lending if they are to create more sustainable growth. A rise in consumer demand for finance has led to the current boom in credit union auto lending. However, once customer demand drops, credit unions will see a shrinkage in loan balances and lowered profitability. It can only be by gaining more market share that credit unions can better weather the ever-changing economy. So, how can credit unions achieve this goal?
Gaining consumer confidence is paramount for credit unions to grow and thrive. So, how can credit unions raise their profiles among consumers?
Understanding The Needs Of Consumers
The needs of consumers change with time. Their expectations and requirements alter to suit their change in circumstances. For example, three decades ago, 60-month car loans were unusual. Today, they are the norm. In fact, some consumers even demand loans that are 84 months or 96 months. Credit unions need to understand consumers’ changing demands and needs. They also need to respond to them rapidly to gain more market share.
The Importance Of Convenience
Convenience is something that is more important to consumers than ever before. Financial institutions that can offer the benefit of convenience have the upper hand. Wowing members and potential members with the possibility of cutting-edge services will put credit unions on the road to success.
Befre members even begin to shop for their vehicles, they need to consider their credit unions for their auto loans. To encourage them to do so, credit unions must consider their members’ touchpoints. Have they optimized the member experience?
Members today want the ease and convenience of being able to make their loan repayments online. With innovative online card services for credit unions, members can do this with ease. With high-quality, cutting-edge online payment solutions, members can access their accounts through their mobile devices or PCs. They can make their loan repayments with their favorite cards or through ACH processing – whichever is convenient.
With banks and other financial institutions offering this convenience, credit unions, too, need to step up to the plate. BillingTree’s cutting-edge credit union online payment services offer members of these financial institutions every payment benefit that banks can offer. Highly secure and fully compliant, BillingTree’s solutions can help credit unions to make an impact on the financial marketplace. Improving the member experience with a competitively priced solution, BillingTree can be instrumental in any credit union’s growth success.
As auto loans increase, credit unions need to take this opportunity to look hard at the financial landscape. They need to determine how they can make an impact on consumers and take advantage of the situation. BillingTree’s card services for credit unions are an ideal way to raise their profiles. By offering members the convenient and streamlined loan repayment solution they demand, it’s possible to grow their market share.