checklist of digital lending software features


The defi Team defi INSIGHT, Digitalization

checklist of digital lending software features

According to a recent survey from Cox Automotive, 83% of consumers want to perform at least one or more steps of the car-buying process online. That same survey also found that 7 out of 10 consumers are more likely to buy from a dealership if they could start the process online. The internet is rich with resources regarding vehicle features, prices, and ratings to help consumers make the best deal. With a growing interest in anytime, anywhere commercial transactions, auto financing shouldn’t be any different. Unfortunately, few lenders can deliver an online experience that seamlessly ties together the consumer, the dealer, and the lender.

Lenders who can’t deliver a superior online experience that is convenient, fast, and secure are missing out on opportunities. Based on our years of experience in delivering innovative lending solutions that enhance efficiency and convenience, we’ve compiled a list of the top key digital lending software features that are needed to provide a top-notch online experience today’s borrowers expect.

Loan Origination Anywhere, Anytime

A superior online experience begins with a user interface that is compatible on nearly any device or operating system. Mobile-responsive design automatically tailors the interface to the display capabilities of the device. Digital lending software that supports a first-rate user interface should:

  • Provide configuration menus that allow you to create a user interface that matches your brand and intuitively guides the borrower through the loan application process.
  • Display conditional fields based on the type of loan and information provided by the user.
  • Employ data masking, minimum/maximum data values, and validation rules to reduce errors that could delay application processing.
  • Support multilingual interfaces to address the needs of increasingly diverse markets. 

The user experience should make it effortless for a motivated borrower to enter the required information in minutes, regardless of the device.

Rapid, Automated Lending Decisions

With all of the applicant information captured digitally, your digital lending software can quickly assess the applicant’s financial standing—using a combination of a workflow, decision rules, and integration with third-party data services—and return a decision. To accelerate decisioning, digital lending software should include: 

  • Integration with identity, income, and employment lending services to proactively identify potential fraud, as well as verify applicant information.
  • Alternative credit data services to increase loan opportunities for applicants with thin or non-existent credit records.
  • Auto-structuring processes that automatically and incrementally modify the deal structure of applicants who initially fail credit policies, with the goal of matching a credit policy and offering a loan. 

In the best cases, decisions are fully automated, reached in seconds, and presented to the applicant with available financing programs, rates, and program parameters based on the vehicle selected. In a competitive lending market, rapid lending decisioning and the ability to offer vehicle-specific financing programs significantly improve your chances of capturing the loan.

Digital Everything: Paper Not Permitted

Your digital lending software should also support conditional approvals or stipulations that require submission of documentation, such as pay stubs, proof of residence, and vehicle registration. The digital capture of required documentation via a mobile device facilitates rapid confirmation of information and funding. 

To further optimize loan or lease originations, your digital lending software should also support e-contracts and e-signatures. Upon loan approval, the workflow coordinates the creation of the loan package and sends the e-contract for review and approval by the applicant. E-signature capabilities facilitate immediate and secure confirmation of the contract, allowing the applicant to move forward in their car-buying journey with confidence. 

Digital lending software that provides this functionality can significantly boost a lender’s ability to capture loans. Real-time loan approvals with terms that match the consumer’s financial standing—coupled with an entirely digital process that eliminates delays and mistakes associated with paper transactions—provide a quick, secure, and convenient online experience today’s consumers count on.   

Augment With Online Loan or Lease Servicing 

Today’s online lending experiences shouldn’t end with funding; the best digital lending software also supports online loan or lease servicing. Once a loan or lease is funded, borrower information is immediately incorporated into the servicing system. Borrowers can then manage everyday loan or lease activities, such as retrieving account statements, setting up recurring payments, obtaining the current payoff quote, making one-time payments, updating contact information, and accessing account servicing FAQs. 

Online loan or lease servicing is a win-win proposition. Borrowers have 24/7/365 access to their account information, and lenders experience reduced call center loads. This leads to higher customer satisfaction and lower support costs. Digital lending software that enables a comprehensive end-to-end online experience, from the initial loan application to the final payment, positions lenders to become the industry’s top performers and leaders. 

Digital Lending Software: A Holistic Approach

COVID-19 has unexpectedly changed the auto industry, accelerating the need for more digital interactions throughout all phases of the car-buying journey. With defi CONNECT, our leading digital lending platform, consumers can buy, finance, or lease vehicles anytime, anywhere without the complications and delays associated with traditional lending processes.   

defi CONNECT continues the online experience throughout the servicing phase with a fully-configurable, mobile-responsive application that gives borrowers the ability to monitor and manage their accounts. With defi CONNECT, lenders can provide a top-tier online auto lending experience.

Getting Started

defi SOLUTIONS’ digital lending software solutions provide an end-to-end platform that includes loan or lease originations and servicing systems, as well as technology-enabled business process outsourcing services. If you’re struggling to deliver the lending experience today’s consumers expect, take the first step in realizing the benefits of fully integrated lending solutions. Contact our team today or register for a demo.

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