Commerce is increasingly driven by mobile devices in the hands of consumers. Lenders who use an auto lending digital platform to manage the entire lending experience—from application submission all the way through the final loan or lease payment and the remarketing process—are well-positioned to capture more loan and lease opportunities. If you’re not already providing a completely digital experience, let’s explore how an auto lending digital platform opens up new lending opportunities.
#1 Provides Convenience of Anytime, Anywhere Submissions
A digital loan or lease experience begins with applications submitted online or via mobile devices. A well-designed submission process allows the applicant to enter the required information easily and quickly, including vehicle-specific details. It will generally possess the following features:
- Prompts that indicate the information to be entered.
- Rules that parse the data to ensure the correct format.
- FAQs that provide additional guidance regarding the submission process.
- Integration with your chat service that allows applicants’ questions to be answered in real-time.
- Digital submission of required documentation that allow items such as identification, proof of address, income statement, or pay stubs to be captured via mobile phone.
When lenders give motivated consumers the ability to easily submit a loan or lease application regardless of time or location, they expand their opportunities to more highly-motivated consumers, such as someone who:
- Just passed a dealership and spotted their “must-have” vehicle in the lot.
- Has been looking for a particular make and model for several months and serendipitously found it with a for-sale sign.
- Is ready to purchase their vehicle of choice at their local dealership after months of online research.
Plus, providing mobile loan or lease submissions allows you to reach the millions of consumers already accustomed to conducting mobile commerce anytime, anywhere via their mobile devices.
#2 Increases Decisioning Speed, Thereby Capturing More Opportunities
An auto lending digital platform enables rapid decisioning. Digital loan or lease applications submitted via mobile devices can immediately be reviewed using automation and —in the best case scenarios—will quickly produce a competitive offer without the need for underwriter review. The platform accomplishes this using:
- Workflows that eliminate manual steps and accelerate decision speed.
- Decision rules that review and validate applicant information.
- Integration with cloud-based lending services that:
- Validate applicant information.
- Provide a more detailed and accurate picture of a borrower’s financial strength.
- Use machine learning to more accurately determine risk-adjusted terms.
- Auto-structuring that iteratively modifies terms for applications with the goal of arriving at acceptable terms for applications that initially fail credit policies.
If the decision rules find an exception that prevents a fully-automated decisioning process, the application can be moved to a high-priority queue for an experienced underwriter’s review. Upon application approval, an auto lending digital platform should be able to respond with an e-contract (with e-signature capabilities) for the applicant to immediately review and digitally sign.
Consumers increasingly expect near-instantaneous commerce transactions. When you put those capabilities in their hands, you differentiate yourself from lenders who continue to rely on traditional loan or lease application processes bogged down by paper and manual processing, or those that are only available via desktop or notebook computers. When loan or lease applications can be submitted via mobile devices or online, you remove the barriers of time and place. With an auto lending digital platform that uses workflows, decision rules, and integration with cloud-based lending services, you literally have the ability to capture a loan or lease within minutes.
#3 Extends the Auto Lending Digital Experience to Servicing
An auto lending digital platform also allows you to extend the mobile experience to the servicing phase. With secure, mobile access to account information, borrowers can set up auto payments, make one-time payments to accelerate loan payoff, review payment history, update contact information, or instantly determine the payoff amount.
With this increased accessibility, borrowers gain a greater sense of control over their respective accounts. The convenience and speed created by mobile loan or lease submissions is reinforced by a mobile application that brings those elements to the servicing phase.
Mobile servicing also brings considerable, quantifiable benefits to lenders. Anytime, anywhere access to account information reduces the call center workload and allows servicing professionals to devote their time and expertise to customers who truly need their help. Digital access to account information and the ability to manage payments eliminates the need for printing and mailing monthly statements, as well as the back-office processing of payments, resulting in operational savings.
defi SOLUTIONS offers a comprehensive auto lending digital platform for originations and servicing. defi CONNECT ORIGINATIONS is a cloud-based, mobile-enabled solution that allows borrowers to shop for vehicle-specific financial programs and rates. defi CONNECT SERVICING provides mobile self-service account administration capabilities. defi CONNECT DEALER enables dealers to perform self-servicing key functions, such as restructuring financing deals using real-time borrower and vehicle-specific rates. Learn how you can boost loan and lease opportunities. Contact our team today or register for a demo.