In recent years, the pandemic has changed how businesses do business in many industries. This is especially true for financial institutions that offer auto loans, including refinancing. Consequently, it’s now easier than ever to find the right lender, apply and finalize transactions directly from your computer, mobile phone or another electronic device.
Shift To Digitizing Auto Lending Programs
Technological advancements have led to the emergence of loan origination software. As a result, lenders who may have had trouble gaining visibility can now compete with more established lenders in the marketplace as they’re now able to leverage software to expand operations and reach more borrowers.
Benefits Of Digital Technologies In Auto Lending
Here are some key advantages of digital technologies in auto lending:
Saves Time
You don’t have to spend time printing out a paper application or visiting a branch to pick one up, gathering tons of documents and making copies for the lender, and dropping the entire package back off to the loan officer to be considered for a loan. (Whew! That was exhausting just to type). Instead, you can apply online in minutes and upload your documents right away to save time.
Saves Money
The days of auto lenders needing tech equipment, server rooms, and a vast IT department are long gone running operations. Cloud technologies now make it easier for lenders to operate without all the bulky equipment and IT staff, and they can pass the cost savings on to you.
More Lender Choices
The evolution of cloud technology makes it easier for new lenders to enter the industry. Consumers now have more options to choose from, including online lenders. In addition, they aren’t limited to auto refinance loans from traditional banks and credit unions.
Faster Loan Approvals
Most loan applications are now processed electronically, which facilitates the review process. You’ll also get a lending decision faster than you would with a paper application that requires a manual review.
AI-Driven Lending Technology
Financial institutions often use artificial intelligence programs in the automotive lending industry to make informed lending decisions. As mentioned earlier, this facilitates faster loan processing and helps the lender close more deals faster.
More Accuracy With Digital Form Processing
It’s more challenging for humans to spot errors and discrepancies with auto loan applications. Before the process became digital, borrowers often faced delays if an issue was missed by the loan officer and caught during underwriting. But with digital form processing, it’s now easier than ever for financial institutions to identify problems with applications and promptly notify the potential borrower to make the necessary corrections or remedy the issue.
Easier Customer Communication
Automations make it easier than ever for lenders to communicate with customers regarding the status of their auto refinance applications. Most lenders also have built-in features that allow customers to submit inquiries electronically and receive a response in real-time or within one business day.
