Auto finance companies are now engaged in a battle for control of the dashboard, along with manufacturers and technology specialists. The focus is moving from a one-off customer touchpoint at the time of the car sale to an ongoing relationship built around providing mobility and connected services. This is truly a revolution in how the market operates, with high prizes for the winners.
The supplier who maintains contact and controls the data is the one who will build the relationship with the customer. The question is whether lenders, dealers and manufacturers are ready for the shift from “widgets to digits”, with the ability to adopt new business models.
A further challenge lies in keeping all the data from consumers, connected cars and within finance company systems safe and secure. Big data and other technologies are streamlining the application process, by removing steps such as the need to provide physical evidence of documents to confirm identity in favour of online verification using secure services.
This means that fewer applications are likely to be abandoned, but as credit checking and finance applications move online, so finance companies need to ensure that customers are protected from identity theft or a data breach which means their personal details fall into the wrong hands.
For their part, lenders need to ensure their services are safe from cyber-attacks and fraud. As well as the reputational damage from data loss, companies must also comply with a growing raft of EU regulations around data protection.
This is just one of the key findings in the new White Clarke Group – 2016 Global Tech Report.
The full report identifies six key commercial and technology trends which will affect auto finance in 2016.