Digital lending company Blend recently released a new offering for car buyers, PR Newswire reported. Blend’s newly launched auto lending product is consistent with the company’s goal to provide simple and transparent lending services to borrowers, while also streamlining the process for lenders.
Blend’s move is in line with recent studies on consumer behaviors, which shows that buyers “[expect] a digital, mobile-friendly experience,” which gives them the opportunity to apply for and receive funds. Moreover, consumers also prefer platforms that allow them to research and canvas before even consulting car dealers.
Aside from offering an accessible service to their clients, Blend also aims to aid lenders in providing an efficient, effective and convenient platform. Blend Head of Product Olivia Teich said that the company’s new auto financing product was also developed to “help lenders enhance the level of service and experience they provide to customers.”
This is achieved by employing Blend’s technology, which utilizes verified data. This is a way to reduce the steps taken during the process, thus minimizing the application time and reducing costs.
This move seems to be successful as the launch of new auto loan products has resulted in a whopping 300% growth in application completion seen by a Midwest-based bank. The bank, using Blend’s technology, also saw a 10% increase in approval rates. Moreover, it showed a significant year-over-year increase in approved auto applications, by 150%.
The company’s decision to enter the auto lending market was a follow-up to its plan to expand its suite of services. Prior to car loans, Blend also released offerings for deposit accounts and home equity in addition to mortgage lending, its main service. The release of these two new home loan-related products resulted in a more streamlined application process for both mortgage borrowers and lenders.