The volume and variety of innovative commerce transactions available on mobile devices continues to grow. Younger generations — millennials and Generation Z — live with mobile devices. The gradual adoption of 5G networks will substantially enhance the speed and functionality of all things mobile — along with higher expectations from millions of users.
To remain competitive and profitable, auto lenders need to acknowledge the preferences of different customer segments. Lenders want to meet prospective mobile-only customers on their delivery channel of choice, capturing loans that would otherwise be ignored.
Don’t Ignore Mobile Opportunities
It’s no surprise that mobile commerce is changing the auto purchase process. Although baby boomers usually start by visiting the dealership, millennials and Generation Z conduct preliminary research online. They read reviews, compare options, determine price ranges, apply for loans, and even order vehicles.
Two often overlooked market segments — the unbanked and underbanked — also rely on mobile devices. According to the 2017 Federal Deposit Insurance Corp.’s National Survey of Unbanked and Underbanked Households, almost half of the unbanked and more than three-quarters of underbanked households own smartphones. For lenders focused on the subprime market, that’s a clear lending opportunity.
Mobile Consumers Expect an Intuitive Experience
When people apply for auto loans on mobile devices, they expect convenient and intuitive interfaces and processes. That includes:
- An interface optimized for the specific mobile device being used;
- Easy and intuitive means of entering applicant information;
- Data masking and validation rules to ensure that information captured is the correct format and contains legitimate values;
- Ability to capture and upload a driver’s license, income statements, or other documentation to provide an entirely digital loan origination process.
- Support for electronic signatures and e-contracts; and
- Automated notifications via email or text message to inform the applicant regarding loan origination process progress.
Modern Loan Origination Solutions Support Mobile
Modern loan origination solutions enable lenders to engage mobile borrowers. Innovative mobile technologies like React and WYSIWYG development methods (no programming required) create the fields, text, images, and buttons that guide the mobile user experience. Once created, an application can easily be duplicated and modified to meet loan types such as watercraft, recreation vehicles, or motorcycles. The mobile application can then be quality and assurance-tested on a wide variety of simulated mobile phone environments to ensure it performs as expected.
By all indications, the future of commerce is mobile. Lenders prepared to capture the mobile opportunity today will be well positioned for continued growth and profit. In many ways, mobile is a must-have capability for lenders who want to prosper.
With more than 20 years experience in the auto finance industry, Lana Johnson leads the charge to drive innovation as COO at defi SOLUTIONS. defi SOLUTIONS is the Technology Partner of Auto Finance Excellence (AutoFinanceExcellence.org), a sister service of Auto Finance News.