Digital channels increase conversion rates, cut funding time | Auto Finance News | Auto Finance News

Digital channels increase conversion rates, cut funding time

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Auto lenders who provide consumers with digital and mobile channels to input verification information can increase loanconversion rates and shrink funding time, according to fresh data from Lightico, a platform that specializes in the collection of digital documents, e-signatures, and other customer-identification verifiers.   

Data collected during the past 12 to 18 months on Lightico’s auto lending clients, including a Top Three auto lender and a top privately-held auto lender, show improvements in time to funding, loan conversion and other key performance metrics, according to Lightico Chief Executive Zviki Ben Ishay.  “Bottom line, lenders can squeeze more successful deals out of a given set of potential buyers,” Ben Ishay told Auto Finance News.  

For those auto lenders, loan origination conversion rates experienced a 45% lift, and time to funding was decreased by 40%, on average. Document and signature collection time was reduced to one day, compared with 11 days, while loanorigination touchpoints  the number of times lenders made customer contact throughout the origination process fell to two from 10.  

“Digital and mobile interactions help move the loan application forward by making it easier and faster for customers to provide the necessary inputs,” such as stipulations, documents and signatures, Ben Ishay said. Providing these digital capabilities can be especially useful for preventing lost opportunities toward the end of the loanorigination funnel, he said, particularly during the “last mile of the loan process,” when the consumer has already decided to take the loan, or has started the process but not completed it. 

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