Credit unions are exploring the use of automation and artificial intelligence (AI) to streamline the refinancing process as more consumers look to credit unions for refi products.

Credit unions have recently prioritized implementing digital technology options to simplify the refi process for consumers, CU Direct Chief Revenue Officer Phil DuPree told Auto Finance News. CU Direct provides lending technology solutions for more than 1,100 credit unions and 15,600 dealership partners.

Through AI and automation, credit unions can add to their portfolio, increase consumer engagement and reach a new customer base, DuPree told AFN. “Those are areas that credit unions are investing in, to help their members be more successful financially,” he said.

Pandemic-related stimulus checks have allowed consumers to remain current on their auto loans, improving their credit scores and making them eligible for refinancing.

“As people’s credit improves, there’s a way to refinance their vehicle and save more money on monthly costs, putting them in a better financial position,” DuPree said.

CU Direct is implementing online processes to allow consumers to start the financing process online, prior to entering a dealership, DuPree said. “Customers don’t want to come in and sit in the F&I office for four hours anymore,” he noted.

In the member-driven credit union space, the question continues to be, “How do we make it easier for our clients to engage with us on a frictionless base,” DuPree said.

Implementing new technologies and online capabilities continues to be a priority for auto lenders, as evidenced by Gesa Credit Union’s adoption of Scienaptic’s credit-decisioning platform as well as Navy Federal Credit Union expanding its digital car-buying capabilities with an online purchasing platform powered by TrueCar.