A fintech company that says it regularly processes more than $2 billion in mortgages and consumer loans daily in connection with providers such as Wells Fargo and U.S. Bank now is getting into the auto-finance business.
This week, Blend launched a new auto financing product, advancing what the digital lending platform calls its mission to bring simplicity and transparency to consumer banking.
Blend believes its new auto product will improve the vehicle purchase and refinance experiences for consumers, while helping finance companies drive efficiency, increase online application completion and improve fund rates.
Blend emphasized consumer behaviors about how to get financed to purchase a vehicle are changing rapidly, with buyers expecting a digital, mobile-friendly experience that allows them to research, apply, and receive financing offers before ever setting foot in a dealership.
According to the 2018 J.D. Power 2018 U.S. Consumer Financing Satisfaction Study, 47% of auto finance customers shopped online for vehicle financing prior to visiting a dealership. Blend’s auto loans product can help increase operational and marketing efficiencies, while providing finance companies with a quick and easy way to interact with their customers at an important inflection point in the vehicle purchase journey.
“We’re excited to roll out our auto financing product to help lenders enhance the level of service and experience they provide to consumers,” said Olivia Teich, Blend’s head of product.
“Blend’s technology uses verified data to eliminate steps and the passing around of documents, streamlining the application process for consumers and reducing origination costs,” Teich continued in a news release. “These improvements will help get car buyers on the road faster and create efficiencies that enable financial institutions to handle more loans.”
Blend’s expansion into auto financing follows its recent launch of two new products — deposit accounts and home equity — supplementing its core mortgage offering. Together, Blend says these offerings provide the foundation for a unified digital lending platform across consumer banking products, making the journey from application to close fast and easy for consumers, while helping lenders increase productivity, deepen customer relationships, and deliver exceptional customer experiences.
After piloting the new auto product, Blend said a $38 billion Midwest-based bank reported a three-fold increase in application completion, and a 10% increase in approval rates with Blend’s technology.
Since going live with Blend across all markets seven months ago, the bank also reported a 150% year-over-year increase in auto applications funded.
For more information on Blend’s auto financing product, visit https://blend.com/blog/news/announcing-blend-auto-loans/.