Chatbots. Personal Assistants. Machine learning. Autonomous cars.
And traditional auto finance and insurance are not immune to the developments of AI; algorithms are now capable of determining a person’s risk factors, allowing customers to interact with a bot to help pick out an optimal insurance plan, and even the possibility of having an in-car virtual assistant to remind you to pay your auto loan is likely.
Here are three ways that artificial intelligence is shaking up the auto finance and insurance sectors:
1. Underwriting
ZestFinance, an underwriting company, recently launched a lender tool that uses machine learning to originate loans for thin-file borrowers. The company is already working with one of the “Big Three” captives to implement this system for its auto originations, Douglas Merrill, founder and chief executive of the company, told Auto Finance News.
The platform applies algorithms to alternative data using machine learning, which is a type of artificial intelligence that allows the technology to learn on its own without manual input.
2. Loan Payments
With the growing array of tasks that virtual assistants are able to accomplish, paying bills is likely to be the next task available. For instance, German Autolabs — an internet-of-things solutions provider — is developing a “digital co-driver,” as an in-car artificial intelligence system.
The system, dubbed Chris, can be used for calling, messaging, email, music, navigation, and more. The Berlin, Germany-based company is also “in early talks” with automakers to develop a solution whereby consumers can make payments through Chris for their auto loan or lease, Holger Weiss, the company’s founder and chief executive, previously told Auto Finance News.
3. Chatbots
With dozens of auto insurers to pick from, choosing the right company and policy can be a hassle. That’s where chatbots can be helpful. Companies like Insurify have taken the chatbot and integrated it deeper into our everyday lives by putting its bot on Facebook Messenger. The purpose here is to provide people shopping for car insurance a quick and painless way to get insurance advice and compare quotes, directly from their smartphones — providing an easy way to tackle a necessary task without disrupting a person’s schedule.
Alternatively, chatbots are also being used in finance, by companies such as EV leasing provider ALD Automotive, to provide 24/7 communication to clients and employees. The AI engine backing the chatbot is being built up to understand and respond to queries and interpret using natural language techniques.
