Is it really worth 1%?

And by “it” I mean indirect auto financing.  I understand that its been around forever, but this paragraph from the FDIC has me realizing why so many MyLoans customers use patient financing as a consumer lending alternative to failing or failed indirect auto financing programs.

Competition in the automobile lending market, driven by captive finance companies, has increased significantly in recent years and is not expected to diminish in the near term. The results are thinning collateral and smaller net interest margins. The potential for heightened risk to insured institutions in the compliance and safety and soundness areas can be mitigated only through prudent lending policies and procedures, adequate internal controls, and strong oversight.

Sheesh.  I don’t know about you, but if I was getting a couple percent on my money I wouldn’t want to see it tied to the FDIC saying, “heightened risk” and “strong oversight.”  The tightening of the indirect auto loan market has sent many banks running away from car dealers and towards medical practices.  The obvious difference is loans originating in MyLoans Patient Financing are guaranteed and therefore no real risk to the bank, but a more subtle difference is the competition.  The FDIC quote above begins with “competition.”  That says a lot to me.  The market for indirect auto loans is so over-saturated and the rates are so tight that it barely makes sense.  When you add in all the nonbank auto financing companies, you end up with a very red ocean.

If you are tired of the competitive pressure, compliance focus and razor thin margins of indirect auto financing, it might be time to take a serious look MyLoans Patient Financing.

About MyLoans™

By providing patients with fast access to medical loans at a fair and unchanging interest rate, the MyLoans™ software by Epic River enables financial institutions to ease the financial stress of health care through collaboration with medical providers. Not only can medical providers offer a federally insured and fully regulated patient financing between banks and patients for medical care needs, but doctors and hospitals alike can finally get immediate funding of their patient’s outstanding balances. Additionally, financial institutions gain new customers and interest income with little administrative overhead in exchange for servicing the loan. For more information, visit

About Epic River, LLC
Since its inception in 2005, Epic River has been providing high quality software services aimed at solving process-intensive problems. With a focus on high quality and rapid delivery, Epic River’s methodology accelerates the process of innovation while keeping a firm grasp on the business case behind the application, enabling our partners to grow their market leadership. The company’s unique approach to the agile methodology and user experience ensures both parties work closely together every step of the way. Whether you’re looking to expand into new technologies or markets, need a custom internal tool, assistance with architecture, or simply need someone you can trust to make technology decisions, Epic River is at your service. For more information, visit