How Loan Origination Automation Improves the Auto Lending Experience For Customers
Buyer satisfaction is the number-one goal for auto lenders. When the loan origination automation experience is highly positive, the customer is more likely to become a repeat client, recommend the dealer or lender to friends, and even share their good experiences online—whether on local neighborhood sites or when asked to give client reviews.
Improved experiences are achievable through auto loan origination automation services. Let’s talk about how.
What Do Customers Appreciate in a Loan Origination Automation Experience?
The unequivocal answer is “digital processing.” Potential buyers want to avoid the traditionally lengthy application process by applying online at their own pace. The numbers reveal their preferences:
- 87% of buyers voiced a preference for virtual credit applications.
- 62% of auto loan applicants want faster, less complicated processes.
- 38% of buyers find the completion and submission process onerous.
- 29% want real-time updates on their loan status.
- 24% seek prequalification options.
In other words, most customers want to arrange lending from home. So going digital is the key to customer satisfaction.
Pain Points for Buyers
Customers recounting pain points associated with financing their last vehicle reveal that 37.8% believe there were too many steps involved, and 30.6% said the processing time was their biggest complaint.
Lenders too were quizzed about the challenges they face. More than 35% of lenders cited operational issues as a struggle, while 28.1% recognized inefficiency in standard processes. The gap between customer preferences and current lending systems and customer needs is wide, but it needn’t be, thanks to digital process availability.
And there’s more: Auto lenders who offer borrower transparency ensure the terms for each customer are within their means. As a result, buyers will avoid repossession and credit damage, while dealers will decrease loan defaults.
How to Achieve Better Lending Results
Responding to borrower’s preferences for online applications and digital communication will increase lender market share. Providing buyers access to a platform capable of accepting financial documents submitted on a mobile device is a further necessity. Ensuring security and accuracy for borrower and lender through robust verification, third-party data, and immediate automated deal restructuring results in high satisfaction rates and increased retention.
The Good News
Auto lenders who are providing a positive loan origination automation experience can easily meet these requirements. Already, countless lenders have improved or overhauled their digital processes. Pandemic conditions necessitated rapid upscaling. Those who quickly established digital and virtual options saw greater sales and buyer satisfaction. The lenders who did not saw a drop in sales.
Despite evidence that ignoring loan origination automation impacts both lenders and buyers, lenders requiring specific configuration software may be daunted about how to achieve it. In reality, all lenders need to do is speak with their platform provider. At defi, fine-tuning is part of the job.
Agility and innovation are part of the digital offering package. Once lenders establish virtual processes, it’s easy to customize as needed. defi considers lenders’ needs then creates a custom system to address those requirements. The transition to virtual access progresses as the client discovers further requirements requiring custom builds.
In other words, the more reliance dealers and lenders place on virtual lending processes, the more they refine their needs. Specificity is determined by lender experience and customer feedback. Customers communicate their pain points. Responsive lenders implement customization to meet that challenge. Loan origination automation improves the customer’s buying experience.
We’ve talked about customer pain points. We’ve discussed what lenders can do to offer a better experience. Loan origination automation improves the auto lending experience for customers. The process is simple when you have the right platform. defi can keep you up to date so you can satisfy and retain your buyers. Your job becomes simpler, and your customers are happy. What’s better than that?
defi SOLUTIONS offers lenders an end-to-end, total solution for the loan or lease lifecycle. Partnering with captives, banks, credit unions, and finance companies, defi’s market-leading, forward-thinking and innovative solutions help lenders exceed borrower expectations. From digital engagement through the complete lending process, defi sets new standards for flexibility, configurability, and scalability in origination and servicing (by your experts or ours). If you’re curious about the possibilities of a complete end-to-end solution for your unique lending lifecycle and improving the loan origination automation experience for your customers, take the first step with our advanced solutions. Contact our team today or register for a demo.