The paper process during a transaction is a challenge lenders face in the space, because up to 3% of all loans initiated tend to not get booked, which would lead to “additional work” and “loss in revenue,” Theodore Papailiou, director of value engineering at eOriginal, said during a webinar entitled How to Enhance Vehicle Finance Processes and Operations.
The key to closing the gap and establishing trust between dealers and lenders is technology, he added.
Therefore, providing a digital-first lending experience to customers has become more imperative than ever before. About 67% of car buyers visited only one to two dealerships before purchasing a vehicle, revealing that auto shoppers are relying more on online research and digital tools to make buying decisions, according to the latest Netsertive survey.
Similarly in the auto finance field, more and more consumers are expecting an online-first loan borrowing experience. Several auto finance industry leaders agreed that in order to create a customer-centric auto lending experience, lenders should offer “instant and quick” resources to cater for consumers’ needs.
LendingTree, for example, has a tech goal this year to “work on a few consumer experience updates that will create a cleaner feel for users and easier comparison shopping,” Mike Ouyang, the company’s marketing manager, told AFN. The origination process could potentially provide opportunities for lenders to examine the customers’ background, preference, and risks, he said.
“Lenders should choose a real tech company to partner with,” said Jim Landy, president of SpringboardAuto.com. “A real tech company means it has modern architecture [of a computer or computer-based system]; it also means the company has great leadership and knows how to serve consumers.”
SpringboardAuto is “constantly calibrating” its decision model to provide “100% automated and real direct feedback,” he said, and currently the platform is able to offer consumers decisions within 60 seconds.
“Auto companies should offer customers the best tools and let the customers resolve problems on their own,” he said. “The ultimate goal is that customers don’t rely on us, but that we can provide them with the best guidance.” In this way, offering instant, quick resources will be able to help create a customer-centric experience, he emphasized.
For more content like this, check out the 17th annual Auto Finance Summit, which will take place on Oct. 25-27 at the Wynn Las Vegas. To learn more about this year’s event — or to register — visit the Summit’s homepage here.
