The 2014 Auto Finance Summit came to a close Wednesday, but not before William Jensen, senior vice president and national retail lending credit executive for Chase Auto Finance, with the help of Charlie Vogelheim, podcast host and producer at MotorTrend Audio, took attendees on a trip to the year 2020 for a look into the future of indirect lending.
The car sharing service Uber, referenced multiple times throughout the summit as a disruption to the auto finance industry, was just another example of consumers getting what they want, when they want it, Vogelheim said, and it is up to the industry to determine how it responds. Uber is predicted to be alive and well in 2020.
Innovations within the auto finance space through 2020, according to Jensen, should include finding ways to finance driver-less cars, and to help consumers providing driving services. Jensen also prophesied that car-buying in the future will be a completely paperless, effortless process that includes online research, electronic or digital contracting, proof of financing transmitted online to the dealer, and the car delivered directly to the consumer’s doorstep.
The pair spoke about a 50-state, universal car loan, done completely electronically, with the information pre-loaded for the consumer, removing friction wherever possible. Consider bi-monthly payment options, for example, with the ability to transition to monthly or bi-weekly, or even make micropayments along the way to paying the entire bill. The customer will be the focus, as he isn’t always now, Jensen said.
The overall message of the presentation stressed how technology can disrupt the industry, and how the industry can preemptively strike. If you’re impressed with the functions of the iPhone 6, Jensen offered as an example, imagine what the iPhone 10 or 12 will be able to do by the year 2020.
