Vehicles give us the freedom of being able to get where we want. To enjoy this freedom, banks and SME lenders offer auto loans making it possible for people to own a car without actually having money for that. Since credit terms in this are becoming rather high, lenders need to figure out new ways of attracting potential borrowers — deliver an exclusive customer experience with automated software.
For today, over 100 million Americans have auto loans. Due to the high auto loan rates, Americans owe above $1.2 trillion in debt. And since the overall cost of auto loan debt has increased 75% for the last ten years, each consumer has to borrow up to $20,000 for the second-hand car and over $31,000 for a new one.
To win over more borrowers, lenders need to implement a new working approach — loan management systems that drive credit-granting into an online format. As an auto lender, you always need to drive a great customer experience and outperform competitors. By closing deals within seconds, you can lead the market. So let’s consider in detail the opportunities that auto lenders get with top-notch lending software.
Lenders need a real-time opportunity to reach consumers via any banking channel, including calls, website, chatbots, mobile application, and in-person. Covering all possible channels, you increase the number of customers who can reach out to your business depending on their communication preferences. In addition to connected channels, you’ll forget about a mess with customer data. You can have all information at hand, as well as run and monitor the whole lending process through one solution.
Credit Scoring Module
A cutting-edge software powered with AI decision-making can almost completely eliminate manual work and errors. Using moderns software, lenders can analyze thousands of applications within seconds and receive detailed reports on evaluation metrics and scoring parameters. Moreover, AI platforms provide highly configurable scoring models that can be built based on the user’s historical data. This allows setting up models for each class of vehicle. With a scoring system at hand, you can reduce decision-making time and reach thin-file borrowers, invisible with outdated software.
Car loan origination software allows streamlining the loan servicing process from the onboarding to the time loan is closed and paid off. The modern software let users set up calculations for different loan types and automate loan disbursement. Instead of doing it manually, you can configure, calculate and track every loan payment schedule using a digital platform. Moreover, car loan software can perform day-to-day calculations for write-offs and accruals.
Document Management and Reporting System
Lending software is all about automation. It allows setting up and handle customer data in an easy way via one software. An auto loan platform will reduce the time and money you spend to manage contracts and audit documentation. Let your customers sign documents electronically and distribute copies automatically. Moreover, collect business statistics and analyze all the actions with helpful data visualization tools. Vehicle loan software allows making critical business decisions and makes real-time reports.
Auto Lease Software
The majority of auto lenders offer another alternative solution to their customers — leasing. Statistically, in the 3rd quarter of 2020 over 26% of cars were sold on lease. Lease management software can be integrated into your current system and developed separately. The solution can help automate leasing workflows from application to disbursement and closure. Its primary function is to let you know the state of every leased vehicle at any time, including signed documentation per each application. Lease software allows eliminating a separated accounting solution to handle financial operations. It can track payables and receivables, electronic transactions, tax filings, bank reconciliations, etc.
Loan and lease software developers also provide CRM modules, notifications, payment integrations, data validation, and other features that allow running a fully digital business. As a result, you can attract more customers interested in online services thus winning the market competition.
On the other hand, the lending platform can reduce risks and bad debtors. You’re able to save your time by concentrating on tasks that can’t be done automatically by the software. Finally, managing more loan applications, reducing time spent per borrower, and generating more revenue.