From paperwork to progress: How eContracting transforms indirect auto lending

Car buyers expect a seamless digital experience. They spend hours researching vehicles online, finding the perfect fit for their lifestyle and budget. Yet, when it’s time to finalize the deal, many still face a slow, paper-heavy process. For credit unions, this disconnect isn’t a roadblock—it’s a chance to lead the way in modern lending and deliver the streamlined experience members want. One way forward is eContracting, an innovative approach that replaces manual steps with speed, accuracy, and convenience for everyone involved.

Drive efficiency with eContracting

Indirect auto lending has long been bogged down by manual paperwork, errors, and delays. As member expectations evolve and dealers demand faster funding, credit unions need to modernize. The solution? eContracting.

Digitizing the contracting process allows credit unions, dealers, and buyers to complete agreements electronically. With eContracting, it’s more than a digital signature—it’s a faster, more accurate, and more convenient way to close loans.

According to Wolters Kluwer’s 2024 Auto Finance Digital Transformation Index, eContracting adoption has jumped 37% in the past year alone and 138% since 2020. The industry is moving forward, and credit unions can’t afford to be left behind.

Unlock value at every step of the lending journey

By moving from manual to digital workflows, credit unions unlock new efficiencies and strengthen relationships with key stakeholders.

For credit unions: eContracting streamlines operations with fewer errors, and faster funding. Real-time validation reduces rework and digital workflows mean more loans processed without adding staff.

For dealers: eContracting creates faster deal closures, fewer funding delays, and less back-and-forth. That means happier customers and results in stronger relationships between the credit union and dealer.

For members: eContracting delivers a smoother, more transparent experience. Whether they sign at the dealership or from home, the process is quicker and more convenient—boosting satisfaction and loyalty.

Measuring what matters

To get the most out of eContracting, credit unions need to track the right metrics. Here are a few to keep an eye on:

• Time-to-fund: How quickly loans are funded after signing
• Look-to-book ratio: The percentage of approved applications that turn into funded loans
• Error rate: How often documents are missing or incorrect
• Processing efficiency: Loans processed per staff member
• Dealer satisfaction: Direct feedback from your partners

By setting benchmarks and reviewing them regularly, credit unions can fine-tune their processes and maximize the return on their digital investment.

From implementation to optimization

With eContracting as the foundation, digital transformation becomes more than a single step—it’s an ongoing journey toward efficiency and member satisfaction. Credit unions that embrace this approach, regularly measure its impact, and refine their workflows have the opportunity to strengthen operations, enhance member experiences, and drive long-term growth.

Ready to modernize your credit union’s indirect auto lending? Discover how eContracting for CUDL^® helps streamline the contracting process, reduce errors, and improve efficiency for your members and dealer partners. Contact us today to take the next step toward a more optimized, digital lending experience.