Firefighter Credit Union Newsroom

Ed Bourgeois is a founder and CEO of  Auto Link, a CU-Centric Technology  and Marketing Solutions-provider that helps CU’s stay relevant,  The auto lending landscape is undergoing a seismic shift, and at the center of this transformation is Amazon Autos. While Amazon has long disrupted traditional industries, its foray into the automotive space signals a significant challenge for credit unions that have historically relied on auto loans as a cornerstone of their lending portfolios. With its unparalleled reach, seamless user experience, and growing influence in the car-buying process, Amazon Autos poses a serious risk to credit union lending. The Amazon advantage Amazon’s dominance stems from its ability to create frictionless experiences for consumers. Amazon Autos leverages the same principles, offering users a convenient platform to research, compare, and potentially purchase and finance vehicles. Through its integration with trusted sellers, lenders and expansive datab...

  Vehicle Loans Credit union used-auto loan balances fell at a very low -3.9% seasonally-adjusted annualized growth rate in September, the slowest pace on record due to high auto loan interest rates, high used car prices, little pent-up demand for used cars, more new-car inventory and the accelerating amortization of the massive amount of loans originated in 2022. Used car prices rose dramatically over the last couple of years due to a shortage in new car production. But as new car production has ramped up recently, used-car prices have fallen 18% from their record high in February 2022 but are still 28% above pre-COVID 19 prices set back in 2019. Credit union new-auto loan balances fell at an 8.3% seasonally-adjusted annualized growth rate in September, the slowest pace since the spring of 2011 due to competitive financing offers from competitors. On a monthly basis, credit union new-auto loan balances fell 0.4% in September, worse than the 0.1% decline reported in September 2023....

  While younger consumers, like Gen Z, may not have significant assets today, Q2’s research highlights a massive wealth transfer on the horizon. An estimated $72 trillion in assets will be passed down to younger generations in the next 20 years. This creates urgency for credit unions to establish strong relationships with younger customers now. Dominguez outlines three key strategies: Make banking as frictionless as possible: “Because you want them to be able to do business with you.” Offer small business banking capabilities: “Gen Zs and millennials as well have been not just large generations, but the most entrepreneurial. Offer them the things they need to be able to run what they need based on where they are at that moment.” Use data to personalize: “Use data, but use it in a way that makes it easy for the financial institution to personalize experiences and engage with them where it matters to them the most.” By focusing on these areas,  credit unions  can position t...