With a sustained, healthy recovery in the auto lending market – from pent-up demand, favorable interest rates, a rebound in leasing, and overall growth in the non-prime segment – there is ample opportunity for auto finance participants. At issue: how do auto lenders continue to capitalize on positive market changes?
Technology Becomes Key to Success:
- The decisions your executives make about initiatives such as data governance plans or adopting e-contracting will become the real differentiators in enabling a lender to address compliance, meet customer expectations and sustain a competitive edge.
- Selecting a technology provider that offers integrated applications, paperless options that can be adopted in phases as business needs change, and training to help drive a better user experience will leverage a lender’s investment beyond just the balance sheet.
- Having the right technology isn’t enough. For lenders looking to fund more loans and drive sustainable growth, that technology must be customized and implemented in a way that reduces transaction costs, consolidates processes and is compliant with whatever the latest regulations might be.
- Auto lenders must also ensure that their LOS is flexible enough to accommodate a growing number of auto lending-specific consumer protection requirements.
What should Auto Lenders be doing?
- The economic rebound and the government’s motivation to reinvigorate lending have triggered an industry-wide desire to lend more. More Lending = More Dealer Profit
- Make sure you have the right auto lending technology in place
- Adopt a big-picture view of technology enables lenders to proactively meet market demands instead of just reacting to a variety of operational risk factors.
Kevin Collins is President of Lending Solutions, Fiserv.