Q: Did the elevated hybrid and EV interest you've witnessed predate the Ukraine war and the rise in gasoline prices?
A: While the current macro events have certainly elevated consumer interest in fuel- efficient vehicles, we have observed sustained growth in the segment for well over a year.
Our electric vehicle and hybrid vehicle loan originations in Q1 2022 doubled from a year ago, exceeding $787 million in Q1.
Notably, in 2019 and 2020, our hybrid and electric vehicle lending totaled more than $2.1 billion.
We are committed to assisting our clients in their own carbon reduction journey, in which access to electric vehicles plays a vital role.
We have increased our focus on assisting clients with their choice to go electric, which has helped support the origination growth in the segment.
Are you encountering any elevated interest in plug-in hybrids, or is it just traditional hybrids you find consumers want?
We are actually encountering more interest in electric vehicles than hybrids, based on recent origination trends.
You credited some of your growth to aligning with manufacturers "to provide financing options to their clients." Can you elaborate?
We are focused on establishing and elevating relationships with EV manufacturers as part of our commitment to achieving net-zero greenhouse gas emissions before 2050.
Late last year, Lucid Group selected us as their preferred lending partner. Through that new partnership, Lucid customers can apply online at Bank of America or work through Lucid Group's agents to finance their vehicle.
Additionally, we have a long-standing relationship with Volvo Car Financial Services and have collaborated with them to create Polestar Financial Services.
Regarding your expanded direct-to-client reach, do you foresee any tension with your dealer network over doing so?
We are committed to building education and awareness to support our clients on their choice to go electric, which is central to our purpose as a financial services company. As an example, we deployed two innovative efforts in 2021 to offer information and advice on EVs.
In August, we launched our new electric vehicle information web page, which provides clients with information on electric vehicle incentives, benefits and financing while highlighting how we're supporting their decision to make sustainability a priority.
In September, we invited over 11 million clients to learn about the latest EV models and technology at our Drive Electric: Virtual Vehicle Show Experience.
With this first-of-its-kind event, we delivered an innovative client experience, complete with advice and expertise from EV industry leaders. This event demonstrated our commitment to sustainability while helping our auto manufacturing partners showcase the newest electric vehicles.
This year, we continue to build upon our initial successes and remain committed to advancing client education and associate readiness.