The coronavirus outbreak has accelerated auto finance’s transformation into a digital-first industry, and it is vital for auto lenders to incorporate technology to better serve dealers and customers.
Startups “see a need to be filled,” said Market Scan Chief Executive Steve Smythe. “The current environment will create a lot of need, and a lot of startups are working feverishly to support the world right now.”
At the fifth annual Auto Finance Innovation Summit on March 11, our 2020 DEMOvation startups detailed how auto lenders can prepare for slowed originations and an expected increase in credit losses by collaborating with startups on technology to quickly pivot operational efficiencies.
In fact, a solid digital platform may be the key to mitigating the slowdown currently impacting the auto finance market even harder than the Great Recession. With the new vehicle SAAR forecast for 2020 plummeting to 10 million units, the ability to provide consumers with an online car buying and financing experience will provide opportunities for lenders to moderate the downturn.
“There are a number of strategies, but it all comes down to the consumer. What does the consumer want, what do they need, how are they going to get through this crisis?” Smythe added. “Then, how can we as an [industry] fulfill those needs and propel all this change for the better.”
Auto Finance News is pleased to present a virtual re-recording of the eight DEMOvation startups, sponsored by Market Scan.