Wells Fargo adding car loan branches to boost less risky lend­ing

The Pak Banker - - COMPANIES/BOSS -

Wells Fargo is build­ing more branches de­voted to car loans and fi­nanc­ing for auto deal­ers in an ef­fort to in­crease its auto lend­ing busi­ness with­out tak­ing bad credit risk, the bank's head of car lend­ing told media.

Mak­ing smart credit de­ci­sions is crit­i­cal now as the auto lend­ing busi­ness heats up. U.S. con­sumers have $1 tril­lion of au­to­mo­bile loans out­stand­ing, up from about $700 bil­lion in the first quar­ter of 2010, ac­cord­ing to data from the New York Fed­eral Re­serve. That rep­re­sents much steeper growth than credit card loans, which have re­mained es­sen­tially flat.

The fourth- largest U. S. bank has 56 branches for car and dealer fi­nanc­ing, in­clud­ing one it re­cently opened in Cherry Hill, New Jersey, said Dawn Martin Harp, head of dealer ser­vices. The branches, called "re­gional busi­ness cen­ters" serve car deal­ers ex­clu­sively.

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