How Sea Air Federal Credit Union [SAFCU] Increased Auto Loan Refinancing by 47% with Way
This auto lending credit union transformed its auto loan operations and boosted member retention by partnering with Way for its benefits program that offers attractive cashback offers on car parking, fuel, car washes, and more.
Increase in Member Engagement
Reduced Delinquencies with Auto Insurance Monitoring
Improve Loan Performance
Challenge
Declining Auto Loan Market Share
Rise of Captive Finance Competitors
Solution
Way.com Auto Refinance Platform
Way+ Member Benefits Integration
Digital Lending & Insurance Monitoring
Table of Contents
Challenge
Declining Auto Loan Market Share
Rise of Captive Finance Competitors
Solution
Way.com Auto Refinance Platform
Way+ Member Benefits Integration
Digital Lending & Insurance Monitoring
Industry
Credit Unions
Company Size
Mid-size
Location
California
The Challenge: Credit Unions Losing Market Share in Auto Lending
Sea Air Federal Credit Union (SAFCU) faced a sharp decline in auto loan market share due to reduced indirect lending and rising competition from captive finance companies.
- The credit union auto loan market share dropped to 23.66% in Q3 2024, down from 25.83% in 2023 and 31.23% in 2022. (S&P Global)
- Indirect lending pullbacks have further reduced market share to 16.1% in mid-2024 from 24.5% in 2022. (CreditUnions.com)
- Captive finance companies control nearly 50% of new vehicle loans, up from 35% in 2022.
- If SAFCU didn’t proactively recapture auto loans, fintechs and automakers’ captive lenders will take them.
Solution
Sea Air Federal Credit Union (SAFCU) partnered with Way to automate auto loan refinancing and integrate Way+, a member benefits program designed to reduce total car expenses.
Key Takeaways
Results in Just 6 Months
- 47% increase in refinanced auto loans per month.
- Lower financial burden on members through cashback & savings.
- Improved loan performance-reduced delinquencies & charge-offs.
- Higher member retention with continuous engagement via Way+.
How did they do it? They provided not just a better auto loan rate but an ecosystem of financial perks that made members stay and engage.
Why SAFCU Chose Way Over Other Providers
SAFCU saw Way not just as a refinance solution but as a member engagement tool.
- Seamless Digital Lending Integration: Going live took 2 weeks from signing the contract.
- Way+ Membership Value: Instead of just offering Refinance, Way bundled cashback savings on fuel, car washes, parking, and maintenance – something no other provider offered.
- Risk Management & Compliance: With automatic insurance monitoring, SAFCU ensured refinanced members never became uninsured, reducing delinquency risk.
- Increased Customer Loyalty: SAFCU saw 50% more member interactions and 30% improvement in repayment consistency.
Way helped SAFCU keep its members loyal to them instead of refinancing elsewhere.
"Before Way+, I was paying too much for my auto loan and spending over $150 a month on gas. After refinancing, not only did my monthly payment go down, but I also started getting cashback on gas and car washes. It's like my car pays for itself now!"
Why This Matters
- If you don’t recapture auto loans, your members will refinance elsewhere.
- If you don’t offer cashback, savings, and protection, someone else will.
- If you don’t leverage Way+ to boost engagement, fintechs will steal your members.
- If you don’t monitor insurance, you risk unpaid, uninsured loans.
Talk to our experts if you’re looking to modernize your auto lending strategy.