With another innovative RTP network solution, US Bank can now provide loan funds to auto dealers immediately after the bank finalizes the loan contract.
After a successful pilot was completed in June, US Bank has already enabled more than 800 auto dealers to receive funding from auto loans via real-time payments. The bank is expected to address more dealers in the coming months as the bank continues to improve operational efficiencies for auto dealers.
While the traditional ACH payment method for auto loan financing can take several days—especially when sales are made outside banking hours—real-time payments to dealers are fast, secure, and available seven days a week, including holidays.
Auto dealers who use real-time payments gain a competitive advantage with greater control over cash flow and better contract-in-transit metrics, a key performance indicator for auto dealers and their employees. The solution is also available to recreational vehicle dealers.
“US Bank is focused on delivering innovative real-time payment solutions so that our customers can tell us their payment pain points,” said John Hyatt, President of Dealer Services at US Bank. “We are simplifying loan payment processes to help our dealer customers better control their cash flow, which gives them a competitive edge and peace of mind. Dealers’ interest in this solution has grown exponentially over the past few weeks, especially during evening hours and even on Saturdays and Sundays, with many consumer loans being approved for finalizing their deals. particularly excited. ,
Earlier this year, US Bank announced that it worked with Lithia and Driveway to help Driveway.com become the first online car dealership to allow paying customers over the RTP® network.
With the RTP® network of clearing houses, the first new payment rail in the US in more than 40 years, US Bank helps businesses send and receive payments instantly 24 hours a day, 365 days a year. US Bank, which participated in payments on the RTP network for the first time, is one of the top senders of RTP transactions in the US. The bank is constantly developing new ways for companies to use real-time payments, such as a new solution to provide greater speed and security for the movement of money between individual investors and broker-dealers.