How Digitization Is Changing The Game Of Auto Finance For Banks

How Digitization Is Changing The Game Of Auto Finance For Banks

By CFO Tech Outlook | Wednesday, December 11, 2019

Auto FinanceSome of the major banks have already started their auto finance transformation journey, but still some of the banks are far from digitization.

FREMONT, CA: The world of the auto finance is changing day by day quickly. There is only one thing that can drive banks through these changes that are the potential to adapt and innovate. Some of the banks have already adopted their auto finance transformation journey, but some are still far from digitization.

Here are some areas listed wherein technology can be the enabler to help banks rethink their business models and customer interactions:

Car Selection

Most of the customers prefer convenience and agility that conventional channels, such as dealership visits, do not offer. Banks can provide a hassle-free experience to customers with the integration of car aggregator websites and can also gain a competitive edge. Banks can also tackle the potential of virtual reality to provide them real-time experiences by creating simulations of car models.

Loan OriginationFintech

The personas of customer form the foundation of the loan origination. In this era of digitization, banks need to keep up with the changing personas and realign the processes. There are several digital marketing techniques in the market which will help banks to target the apt group of customers at the right time in the right place. Once banks’ have their customers’ attention, they can engage with the customers with the right set of offerings devised as per the insights gained from collected data, such as customer profiles, preferences, and demographics.

Customer Service Automation

Several customer services can be automated by deploying chatbots powered by Artificial Intelligence techniques and natural language processing (NLP). Banks can dig out information from the input provided by the customers to analyze and confirm them to accurately identify problems or can give suggestions.

Digitization of Dealer/Agent Processes

Nowadays, banks are switching to deploy faster data capturing and application processing systems, but still, some of the dealers are using paper-based forms to process customers’ applications. These manual systems delay the overall process. Digitization will enable faster processing of applications and will also save time and money.

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