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Building Credit Union Relationships Key to Success

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There are several major factors to consider when building beneficial credit union relationships in today’s competitive finance industry. In order for dealerships and businesses alike to continue growing and profiting while catering to the needs of their customers, it is vital for them to recognize the challenges. With the right approach, these challenges can be overcome and result in a stronger and more mutually rewarding relationship.

 Travis Credit Union building in Vacaville. (Robinson Kuntz/Daily Republic)

Building Relationships


One factor that hurts credit unions the most is their relationship with auto dealers. If auto dealers are not able to secure new loans, then there is not going to be much of an increase in memberships for credit unions. A case study found that Incorporating credit direct solutions would provide local dealers with an effective way to increase new loan acquisitions, and give credit unions a way to gain new members. This will greatly improve customer satisfaction with the application and or approval process, since it provides a better selection of financing options. With the right lending solutions in place, credit unions and dealers are able to take advantage of more loan opportunities while reducing the amount of customers that disengage during the point of sale. Lenders that show genuine concern and care for the staff at local dealerships can benefit from that relationship. The staff will feel more inclined to do business with those lenders and to maintain a healthy relationship that is profitable for both entities.


Memorable Experiences


Today’s breed of customers and employees want to feel involved and treasured, but as NPR pointed out in a podcast entitled, Why Buying a Car Is So Aweful, local legislators may be fighting to keep dealer networks inflexible while driving up the cost of retailing.


Taking the time to provide customers with a more personable touch creates a sense of belonging and enhances their experiences and may potentially help offset this awful car buying experience. This will foster a sense of loyalty and affection for everyone that is involved and greatly increase the success rate. It is important for credit unions and auto dealers to work together to cater to the needs and demands of current, potential, and old customers.


Reduce Write-Offs to See an Increase in Profits


The sale is not over once a customer is approved for an auto loan. Customers are more likely to refinance for lower rates when they do not have a good relationship with their lenders. Unless a credit union is offering better rates, the best way for any financial institution to retain customers is to offer a more diverse selection of financing options and to improve its relationship with its customers through courtesy calls, better customer service, and a fast and easy pre-approval process. Customers need to feel as if they are gaining instead of losing. In addition to new loans and customers, credit unions and dealers both need repeat customers. Repeat customers enable credit unions and auto dealers to meet and exceed their financial goals and to grow their businesses.


Remember, the relationship between customers, credit unions, and auto dealers needs to be in sync with one another. There needs to be a healthy relationship where lenders and credit unions actively listen to each other so they can intuitively respond to the needs of their customers. Without a good relationship, one party cannot succeed without the other. Credit unions and auto dealers have to help each other to achieve their individual goals, in order for any of them to win and keep customers.

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