When it comes to borrower’s financing, lenders and dealers must make it easy and make it fast. The ability of the consumer to quickly obtain financing prior to arriving at the dealership or showroom floor significantly boosts the chance of vehicle sales. An integrated approach lets a consumer go from shopper to borrower in minutes.
The car-buying journey continues to evolve. More than ever, lending solutions that are mobile and able to rapidly return a decision are a must. Those capabilities depend on several key functions that take advantage of recent innovative technologies.
Whether a consumer initiates the purchase hours or minutes before they visit the showroom or prefers to transact a completely touchless deal, mobile loan submissions are the first step in delivering a positive sales and financing experience. A mobile application should:
- Be compatible with leading phones and tablets
- Configure easily to align with the dealer’s brand and financing process
- Provide an easy and intuitive application experience in the borrower’s native language
- Present real-time vehicle pricing prior to submission
- Capture documentation digitally, such as a driver’s license, income or proof of residence
With all applicant information provided digitally, a mobile loan submission sets the foundation for automation to execute a rapid decisioning process.
Automation is the key to rapid loan decisioning, and rapid decisioning is key to increasing vehicle sales. To achieve this level of efficiency, loan origination solutions should incorporate:
- Workflows and decision rules that guide the loan origination process
- Cloud-based lending services that verify identity, income and employment to minimize risk
- Alternative credit data services that help boost the chances of granting credit to applicants with thin or no credit history
- Auto-structuring that modifies loan terms of applicants who initially fail credit policies
- E-contracting that eliminates delays associated with paper and allows for acceptances via e-signatures
Whether a borrower arrives at the dealer pre-qualified via mobile loan applications or receives credit as part of the sales process, a rapid loan decisioning process improves the customer experience. When significantly less time is spent obtaining credit, the sales process can become faster and more efficient — a win-win for dealers and customers.
Lenders who offer modern loan origination solutions that easily integrate into their own and their dealer partners’ processes can successfully address the expectations of today’s consumers. Mobile accessibility makes it easy to shop for financing programs anytime, anywhere; automation delivers decisions that boost the probability of closing the deal.
Editors Note: This feature first appeared in the September issue of Auto Finance News, available now.
Shaimaa Elk serves as Executive Vice President, Chief Information Officer, and Chief Technology Officer, and is responsible for all elements of product and technology development at defi SOLUTIONS, the technology partner of Auto Finance Excellence, a sister service of Auto Finance News.
Auto Finance Summit, the premier industry event, returns October 20-22, 2020, as a virtual experience. The virtual experience will offer the quality networking and education of past events, all through an online platform. To learn more about the 2020 event and register, visit www.AutoFinanceSummit.com.
