J.D. Power’s 2018 U.S. Consumer Financing Satisfaction Study, cited in Automotive News, highlighted the value and benefit of easy-to-use mobile apps. The review, ratings, and awards organization said that mobile apps are one of the main factors influencing customer satisfaction with auto lenders. That should come as no surprise: People rely on mobile applications to research purchases, conduct commerce, and monitor financial transactions.
Millennials in particular orchestrate their lives via mobile devices. Generation Z was born digital. With the gradual rollout of 5G networks, more consumers will almost exclusively conduct commerce via mobile devices.
All of these factors indicate the growing consumer expectation for mobile transactions. Mobile apps for auto loans are a requirement for every lender determined to thrive. Mobile apps for auto loans give lenders direct access to mobile-centric consumers, and improve loan origination process efficiency.
Vehicle Buyers Expect a Mobile Experience
Despite 1) The apparent leveling-off of new vehicle sales; 2) Increased consumer usage of alternative transportation like ridesharing; and 3) Student loan debts, Experian says millennials are a growing market segment and that they are purchasing new vehicles.
Millennials and Generation Z are comfortable conducting every step of the vehicle purchasing process via mobile. Mobile makes it convenient to:
- Research vehicle makes and models;
- Review consumer reports;
- Evaluate financing options; and
- Apply for loans anytime, anywhere.
In the past 10 years, traditional fact-finding or “kick-the-tires” visits to dealerships have been replaced with online research. It’s no longer unusual for a well-informed buyer to arrive at the dealership for the first time, financing pre-arranged, ready to make their purchase.
Mobile Applications Accelerate the Loan Origination Process
Mobile apps for auto loans help lenders accelerate the loan origination process. A well-designed mobile app guides applicants through the process of entering the required information and allows documents such as driver licenses, pay stubs, and proof of residence documents to be captured and transferred digitally with the loan application. Capturing all of the applicant information digitally accelerates the entire loan origination process by:
- Eliminating costs associated with paper loan applications;
- Ensuring all required information is entered in the correct sequence and format, thereby avoiding errors that delay lending decisions;
- Immediately reviewing the application using workflow, decision rules, and automated calls to cloud-based lending services and responding with a deal structure—often within seconds; and
- Retaining the loan application and any associated documentation as a digital record per compliance regulations.
Mobile apps let lenders engage applicants where and when they are highly motivated to buy, responding quickly with an attractive deal structure. In a competitive market, response speed is competitive edge.
Modern Loan Origination Solutions Make Mobile Apps Easy
Modern loan origination solutions make it easy for lenders to provide mobile apps for auto loans and tailor the app to the specific requirements of their lending practice. There’s no need to be concerned with code-level development; configuration does the work.
Using a WYSIWYG environment, you can select forms and fields, provide text prompts, create buttons, choose colors, and select images to create an app that reflects your brand. Configure drop-down menus, data masking, and validation rules to logically guide applicants through the application process. Ensure the app works as expected by testing it on simulated mobile devices. Configuration also makes it easy to modify the mobile app as market conditions or lending strategies change.
The direction is clear: Mobile is quickly becoming the preferred channel for auto purchases. A mobile strategy will improve direct lending opportunities and accelerate the loan origination process.
defi SOLUTIONS offers market-leading loan origination solutions. We’d be pleased to show you how easily mobile apps for auto loans can be created and deployed. Take the first step toward capturing more direct lending opportunities via mobile by contacting our team today or registering for a demo of defi LOS.
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