Technology is Key to the Future of Auto Finance

The Issue:

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.

 

 

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