JPMorgan Chase has entered a partnership with fintech firm AutoFi which will assist customers in the selection and financing of vehicles via their website of automotive dealers. This will help in reducing the time taken to complete a sale. JPMorgan Chase becomes the first lender that operates nationwide to join the platform of AutoFi.
“AutoFi helps dealers provide a fast and easy digital car-buying experience that consumers want. Our customers are our top priority – both dealers and car buyers. We want to provide them with the best financial experience,” Chase Auto Finance’s chief executive officer, Mark O’Donovan, said.
Online purchasing and financing
According to research conducted by Chase, close to 50% of consumers are keen on purchasing and financing vehicles online. With the digital retailing platform of AutoFi, dealers are connected with buyers as well as with lenders. Financing terms will be delivered online by Chase via the AutoFi platform in a matter of seconds.
The formation of a partnership between AutoFi and JPMorgan Chase comes in the wake of the latter preparing to kicking the earnings season for banks as it prepares to release fourth quarter results. Following the overhaul of the tax code in the United States, JPMorgan has already indicated that it will take a hit of approximately $2 billion. This is lower than its rivals such as Goldman which is taking a hit of $5 billion and Citigroup which is taking a hit of $20 billion.
Since the adjustment will be a one-time charge, in the long term however the tax overhaul effort is expected to boost the net income of financial institutions. Additionally it is expected that JPMorgan will report a decline in trading as its executives had late last year indicated that they observed declines of around 15%. At the time executives of Bank of America also said that they were expected a decline in trading activities. The steepest drop has been observed in the fixed-income trading division.
Per Wall Street’s estimates it is expected that JPMorgan Chase will report an adjusted EPS of approximately $1.69 compared to $1.58 which was reported in the fourth quarter a year ago. Revenues are expected to come in at $24.99 billion, which is an increase of 2.7% y-o-y from $24.33 billion. In the last eight quarters JPMorgan Chase has beat both revenue and earnings estimates.
Of particular interest to some Wall Street analysts is evidence of how healthy credit quality is at the bank. Some analysts will also be interested to get the customer-retention figures for JPMorgan’s Sapphire credit card.