US bank launches real-time car loan service


As financial institutions consider opportunities to monetize their investments in faster, real-time payments, one of the frequently discussed use cases is providing loan proceeds. While the transaction speed is nice, the ability to transact on weekends and holidays probably has a bigger impact. How would real-time auto loans have an impact?

Today, The American bank announced that they offer car dealerships the opportunity to receive loan funds immediately after the bank finalizes a loan agreement. The transaction is processed through The Clearing House RTP network and is now available at 800 outlets.

Here’s more from the bank’s press release:

Following a successful pilot project completed in June, US Bank has already enabled more than 800 car dealerships to receive auto loan funds via real-time payment. The bank plans to provide the solution to more dealerships in the coming months as the bank continues to improve the operational efficiency of car dealerships.

While the traditional ACH payment method for auto loan financing can take days – especially when sales are made outside of bank hours – real-time payments to dealerships are fast, secure and available seven days a week. days a week, including holidays.

Auto dealerships using real-time payments gain a competitive edge, with better cash flow control and improved in-transit contract metrics, a key performance indicator for auto dealerships and their employees. The solution is also available for recreational vehicle dealers.

US Bank is focused on providing innovative real-time payment solutions to solve what our customers tell us are their payment challenges,” said John Hyatt, President of Dealer Services at US Bank. “We are simplifying loan payment processes to help our dealer customers better control their cash flow, giving them a competitive advantage and peace of mind. Dealer interest in this solution over the past few weeks has grown rapidly, with many particularly excited to finalize their deals moments after a consumer has approved a loan, particularly the evening and even on Saturdays and Sundays.

Preview by Sarah CaveDirector, Debit and Alternative Products Advisory Services at Mercator Advisory Group

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