Achieve a Better Lease Origination Experience With These 5 Tips

Lenders’ success depends on their ability to stay competitive. To do this, savvy lenders need to leverage new technologies to stay ahead of the competition. By using the latest cloud-based lease origination software, lenders can reduce decision-making time while maximizing profitability and maintaining compliance.

If you’re ready to update your legacy software and are underwhelmed with your current platform’s performance, these five tips will help you achieve a better lease origination automation experience.

Digital transformation has changed the lending industry dramatically. The increased adoption of cloud-based software provides borrowers with a lease origination automation experience that legacy systems can’t match. Transitioning also benefits lenders by increasing efficiency and agility.

Lenders benefit by leveraging technology and automation more effectively to drive productivity and efficiency within their organizations. Some basic distinctions between legacy software and modern software are:

Legacy systems were created during simpler technological times when computers were less versatile and flexible. As a result, these older systems limit what users can do, while modern software opens up new possibilities. Let’s look at some critical advances now available to lenders that have created truly unique lease origination automation experiences for borrowers.

This new generation of lease origination software introduced features and functionalities that help lenders increase profits and provide better service to borrowers. Here are some significant points that lenders must develop to avoid losing out on lending opportunities:

The growth of online lease origination is greatly influenced by two factors:

To meet the expectations of today’s borrowers, lenders need a lease origination platform that allows them to take advantage of the growing demand for online leasing. They also need to partner with a vendor that closely monitors and incorporates new technologies. Keeping your lease origination system up-to-date ensures that your business will perform at the highest level possible.

Automated structuring offers borrowers an alternative in situations where their lease would not normally be approved. In seconds, auto structuring restructures and returns deals that fit a borrower’s situation and a lender’s credit policies.

Used with automated structuring or on its own, auto decisioning also leads to more efficient, time-saving, and accurate processing. 

Auto decisioning automatically applies rules and policies to an application. 

Let’s break down the key benefits of auto structuring and auto decisioning:

• Considerably reduced decision times, allowing you to return decisions to dealers in seconds.
• Increased closure rates (with or without increased application volume) with near-instant decisions.
• More time for underwriters to focus their skills on more in-depth processes (like portfolio reviews) due to the automation of time-consuming tasks.
• Improved accuracy and consistency in deal structures.

Auto structuring and auto decisioning differentiate lenders. With auto decisioning, you can deliver instant responses to dealers or applicants, boosting dealers’ vehicle sales. With some lease origination platforms, lenders can offer multiple deal structures, creating additional incentives for vehicle sales and lease opportunities.

Automated origination software is built to help lenders conform to standards, including through the provision of real-time audit trails and enhanced security measures. This increased security also helps lenders avoid litigation.

Core compliance functions within this software help you ensure that your company conforms to all relevant regulations. This offers an additional layer of protection against any failure to follow lending rules.

Today, compliance has become essential to every business, with most software providers now adding compliance features. It’s not just about complying with regulations and following appropriate processes. Preventing fraud and reducing liability just makes good business sense.

Compliance features ensure that all your transactions follow the law. They help lenders with Know Your Customer (KYC) guidelines, while bringing greater transparency to the process.

Utilizing automated application source integrations allows lenders to quickly establish connections with new dealers and borrowers, bringing with it tens of thousands of new lending opportunities.

Easy integration with systems like:

• CU Direct
• RouteOne
• Dealertrack

When modern origination systems are pre-integrated, it also helps rapidly increase application volumes for lenders.

According to research by Experian and Oliver Wyman, close to 106 million U.S. consumers are unable to secure credit at mainstream rates because they are credit invisible, unscoreable by conventional credit scores, or have a subprime or below credit score. These potential borrowers lack sufficient traditional credit data, for which modern automated systems provide vital insights overlooked by these reports. Access to this data allows lenders to mine this criteria from multiple sources, giving them an advantage over competitors by increasing approval rates.

Alternative credit data can include sources such as:

• Real estate ownership
• Utility information
• Rental records
• Driving records
• Bank accounts

When new lease application volumes drop, alternative credit data can still keep your approvals high. This allows lenders to quickly identify patterns in data to establish an applicant’s risk level, facilitating informed decisions that will enable you to stand out against your competitors.

Despite these innovative capabilities available in advanced lease origination software, legacy systems are still widely used in the auto finance market. Updating outdated software used to be an involved process that was both time-consuming and costly. However, by implementing cloud-based technologies, it’s now possible for companies to quickly, efficiently, and cost effectively configure their systems with new features.

Prompt Implementation With Configurable Software

Due to the advancement of new technology, your lease application process is bound to change. That’s why you’ll need to upgrade software so that these concepts can support a fully configurable lease origination automation experience.

To do that, lenders need a software that:

• Allows lenders an excellent user experience (UX) on both mobile devices and desktops.
•  Gives configuration options to tailor the interface to your unique brand.
• Supports mobile lease applications from anywhere at any time.
• Controls which fields are shown based on context or previously entered data with display logic.
• Supports data validation using rules, masking, minimum & maximum values, and integrations.

Older systems that lack the latest advancements in automation, scalability, and flexibility are quickly becoming unsuitable for meeting the demands of a technology-driven world. Partnering with a vendor that offers configurable solutions that fit your unique lending needs will help you gain a competitive edge.

Achieve The Best Lease Origination Automation Experience

Lenders can achieve the best lease origination automation experience with mobile capabilities, faster decision-making, and better data resources. If you’re struggling to compete in the current market, partnering with a vendor that offers configurable solutions to fit your distinctive lending needs will help not only give you an edge over your competition but put you at the front of the pack.