For the auto finance industry, the challenge is clear: a deluge of technology change is coming, and lenders need to take action to in order not to be shut out of the competition.
Lenders, dealers and manufacturers need to think about mobile payment technology and how they plan to integrate their systems, what shoppers want in their experiences whether it be in store on their phone, as well as high-level technologies to improve underwriting and prevent fraud.
Here are seven innovation ideas for 2018:
1. Biometrics
Financial institutions like Bank of America, Chase Auto Finance, and PNC Bank have begun using biometrics in the past few years as a way to prevent fraud.
“Fingerprint ID was the No. 1 requested feature from mobile users before we introduced it,” Betty Riess, a Bank of America spokeswoman, said in a published report. But there’s more biometrics than just fingerprints, there’s also voice and facial recognition. These last two have seen an increase in awareness with the rise of digital personal assistants, and the new iPhoneX which unlocks when its owner shows his or her face directly at the screen. How long until auto lenders and captives catch on?
