Magazine article American Banker

Chase to Offer Dealerships Auto Loan Decisions over Internet

Magazine article American Banker

Chase to Offer Dealerships Auto Loan Decisions over Internet

Article excerpt

Chase Manhattan Corp.'s auto financing division has begun using the Internet to provide dealerships with loan-approval decisions.

The bank is the first of eight financial institutions that have committed to using the system, developed by International Business Machines Corp.

By computerizing loan applications and sending data electronically, Chase officials said the bank can grant approvals in as few as two minutes.

"It reduces my costs and adds to dealer satisfaction by getting a quick turnaround," said James B. Brew, president of Chase Automotive Finance Corp.

Up to 50% of the division's auto loans will be running through the system within the next 18 months, he said.

Chase, the largest car lender not affiliated with a car company, is connected to six dealerships currently using the system and will establish connections to 100 dealers with the official introduction in October.

Other financial institutions planning to use the on-line system include NationsBank Corp., Charlotte, N.C.; GE Capital Auto Financial Services Inc., Barrington, Ill.; Regions Financial Corp., Birmingham, Ala.; and Citibank Puerto Rico.

The auto finance program, residing on the dealer's personal computer, features a user-friendly screen display with step-by-step instructions and error checks. Auto dealers can manually override the screens.

The dealer's computer is connected to the Internet through the IBM Global Network, which is also used to retrieve an encrypted report from a credit bureau.

The dealer's pre-established "key" decodes the report and causes the screen to display one, two, or three stars - representing poor, fair, or good credit. …

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