Accelerate auto loan funding with artificial intelligence

This white paper explores a four-part framework that includes artificial intelligence (AI) and smart automation using intelligent document processing (IDP) to support the move toward end-to-end automation in auto loan funding. We delve into the challenges plaguing the industry and showcase how Iron Mountain's Digital Auto Lending solution, built on a robust content management platform, InSight Digital Experience Platform (DXP) with InSight Intelligent Document Processing (IDP) capabilities, empowers lenders to:

• Minimize manual touches and processing times, reducing costs and errors
• Enhance data quality and streamline workflows, improving dealer relationships and customer satisfaction
• Improve compliance, minimizing business risk

Understanding the challenges of auto loan funding

The auto financiers are pressured to deliver a seamless customer experience while adhering to strict regulatory requirements. Here are some of the joint pain points that hinder efficiency:

• Manual Processes: Loan applications, contracts, and other critical documents are often manually handled, leading to time-consuming tasks, potential errors, and delays.
• Disparate Systems: Disparate data sources and systems create data collection, validation, and reconciliation challenges.
• Inaccurate Data: Manual data entry is prone to errors, slowing processing and leading to loan rejections.
• Lack of Visibility: Limited visibility into the loan funding process makes it difficult to identify bottlenecks and inefficiencies.

Iron Mountain's four-part framework for auto loan funding automation

Intelligent automation and AI are critical to efficiency and competitiveness in the auto finance industry. Iron Mountain's four-part framework provides a blueprint for lenders to achieve an automated loan funding process.

1. Digitize applications and loan originations

The first step towards automation is digitizing loan applications and supporting documents. Iron Mountain offers solutions to scan and capture all loan origination documents and convert them into a secure digital format, eliminating manual data entry and checking that all necessary information is readily available for processing.

2. Automate contract ingestion and document processing

Iron Mountain's InSight IDP leverages machine learning and AI to automatically classify, extract, and validate data from loan contracts and other relevant documents, including vital information such as borrower details, vehicle information, financing terms, and credit check results.

3. Streamline contract validation, delivery, and bank review

Iron Mountain's platform automates contract validation and ensures all documents meet loan eligibility criteria. Prebuilt data extraction models, business rules, and workflows expedite the delivery of loan packages to banks for review. The system also integrates with core banking systems via APIs for seamless data exchange.

4. Leverage a trusted partner

Iron Mountain is a trusted partner for lenders seeking to automate their loan funding processes. With over 70 years of experience in information management and a proven track record in the financial services industry, Iron Mountain offers unmatched expertise and security.

The power of IDP in auto loan funding

Iron Mountain's Insight IDP technology is pivotal in the automation process. Here's a closer look at its functionalities and benefits:

• Automated data extraction: IDP eliminates manual data entry by automatically extracting key data points from loan documents.
• Improved accuracy: IDP significantly reduces errors and inconsistencies in data capture.
• Enhanced workflow efficiency: Automated data extraction and validation streamline workflows and accelerate loan processing times.
• Reduced costs: In designated workflows, IDP eliminates the need for manual labor, leading to significant cost savings.
• Compliance support: IDP can validate that loan packages comply with your business rules and defined regulatory requirements.

Iron Mountain Digital Auto Lending solution: A comprehensive approach

Iron Mountain's Digital Auto Lending solution is a managed service offering that incorporates a secure, end-to-end, Software-as-a-Service (SaaS) platform built on InSight DXP. This platform facilitates the seamless ingestion and processing of unstructured data, integrating with core business systems via APIs or prebuilt connectors.

Learn more about the four-part framework in the white paper “Accelerate auto financing with artificial intelligence: A four-part framework” and visit our Digital Auto Lending solution website.