In today’s digital-first world, car buyers are doing their homework—spending more than 13 hours researching vehicles online. However, when it comes time to finalize the deal, they’re still stuck in a paper-heavy process that can drag on for hours. The disconnect between digital expectations and outdated lending workflows isn’t just frustrating—it’s a missed opportunity.
Consider eContracting
Indirect auto lending has long been bogged down by manual paperwork, errors, and delays. As member expectations evolve and dealers demand faster funding, credit unions need to modernize. The solution? eContracting.
eContracting digitizes the loan contracting experience, allowing credit unions, dealers, and buyers to complete the loan contract electronically. However, it’s more than just a digital signature—it’s a smarter, faster, and more accurate way to close loans.
According to Wolters Kluwer’s 2024 Auto Finance Digital Transformation Index, eContracting adoption has jumped 37% in the past year alone and 138% since 2020. The industry is moving forward, and credit unions can’t afford to be left behind.
The real-world benefits
By moving from manual to digital workflows, credit unions unlock new efficiencies and strengthen relationships with key stakeholders.
For credit unions, eContracting streamlines operations, with fewer errors, and faster funding. Real-time validation reduces rework, and digital workflows mean more loans processed without adding staff.
For dealers: eContracting creates faster deal closures, fewer funding delays, and less back-and-forth. That means happier customers and results in stronger relationships between the credit union and dealer.
For members: eContracting creates a smoother, more transparent experience. Whether they sign at the dealership or from home, the process is quicker and more convenient—boosting satisfaction and loyalty.
Measuring what matters
To get the most out of eContracting, credit unions need to track the right metrics. Here are a few to keep an eye on:
- Time-to-fund: How quickly loans are funded after signing.
- Look-to-book ratio: The percentage of approved applications that turn into funded loans.
- Error rate: How often documents are missing or incorrect.
- Processing efficiency: Loans processed per staff member.
- Dealer satisfaction: Direct feedback from your partners.
By setting benchmarks and reviewing them regularly, credit unions can fine-tune their processes and maximize the return on their digital investment.
From implementation to optimization
eContracting shouldn’t be viewed as a one-time technology upgrade—but as a launchpad for ongoing digital transformation. Credit unions that treat it as a dynamic process, regularly measure its impact, and refine their approach will unlock stronger operations, better member experiences, and long-term growth.
Ready to modernize your indirect lending workflow? Contact us today to learn more.