CORONAVIRUS AND ONLINE SHOPPING: WHAT LENDERS NEED TO KNOW

Charlie Lewis defi BLOG, defi CONNECT, General News, Thought Leadership

The financial technology industry has been talking for a while now about the consumers’ need for online shopping and borrowing. In hindsight, especially given new social guidelines, that was brilliant. The problem was: Everyone was saying it, but the acting on it part…not so much. But problem solved! There are now great tools available and lenders that fear losing borrowers to competitors with an online presence need to act.

A dynamic online presence is a lender’s price of admission in 2020 into the lending marketplace.

Where should I start?

Just as dealer management systems digitized manual aspects of auto sales and lending and dealer portals (i.e. Dealertrack and RouteOne) made eContracting a reality, today’s modern loan or lease originations or servicing systems form a fantastic foundation from which to build your online presence.

You should be able to build from your previous investment and take advantage of the latest technology. Of course, your LOS and servicing systems must be flexible, scalable, and able to bring each lender’s unique indirect and direct lending flow to life online. Your online shopping and borrowing systems should also ideally integrate with third-party information sources and not force a lender to conform to cookie-cutter, out-of-the-box widgets.

With consumer-facing solutions, borrowers need an intuitive car buying, financing, and owning journey they can access 24 x 7 from any device. Lenders, regardless of borrower journey, need certain key milestones and data elements addressed for process and legal reasons. The blending of the needs of borrower and lender is the starting point of any online solution.

Your ideal solution is truly end-to-end and backed by a provider with not only decades of lending expertise and a history of building strong relationships with their lender clients, but also an eye on innovation and dedication to the future. The solution must be designed to evolve as the industry evolves and deliver on important borrower milestones, such as shopping for borrower-specific and vehicle-specific financial products and rates, choosing applicable aftermarket products, submitting credit applications, and capturing online funding stipulations and electronic signatures.

And that’s on the lending side only.

As far as the life of the loan, the solution of today must bring together everything – borrowing and servicing. Servicing online is all about automating what was previously manual, digitizing what was previously paper, and giving your borrowers the ability to help themselves: access their account to easily check a balance and make a payment.

The right solution will free up your phone agents for unique borrower interactions.

Indirect lending: What about your dealers?

The shift from brick-and-mortar to online doesn’t equate to the elimination of the dealer. Rather, it requires an orchestration of borrower, lender, and dealer across the borrower online journey. Your technology solution should provide that orchestration and even provide dealer-facing solutions that allow access to financial program and rate shop just like a borrower.

The borrower requires dealer touchpoints along the journey. Solution flexibility and scalability enable the dealer synchronization and touch points to occur through the online flow.

Want to read more?

Coronavirus May Finally Bring Online Car Shopping into Mainstream (Car and Driver, April 15, 2020)

You Can Search the Country for Used Porsches, Then Get Your Choice Delivered (Car and Driver, May 14, 2020)

How to Buy a Car Online in 8 Steps (U.S. News & World Report, December 31, 2019)

defi SOLUTIONS’ online defi CONNECT product brings together borrowers and lenders. defi CONNECT integrates with defi’s flexible, scalable, end-to-end platform that includes loan and lease originations and servicing systems as well as technology-enabled business process outsourcing services. defi has the tools and people to understand unique lender needs and can recommend the best start and end for your online journey.

Getting Started

defi SOLUTIONS provides configurable loan origination systems, loan management and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. If you’re struggling with the limitations of your current lending technology solutions, take the first step in realizing the benefits of modern technology. Contact our team today or register for a demo.

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