Accelerate auto financing with artificial intelligence: A four-part framework

Summary

Market demand for vehicles continues to grow, creating opportunities and challenges for the auto financing industry. Auto financiers are expected to provide smooth customer experiences while making loan funding fast, accurate, and compliant. At the same time, they must build capacity for greater sales volume.

Many are seeking a digital-first approach—a way to automate and standardize document processing and digital records to fund the dealership on the loan transaction. Then, provide seamless distribution into the bank’s back-office processes. This paper explores strategies and considerations using a four-part framework auto financiers can follow on their path to artificial intelligence (AI) automation.

Executive Overview

Driven by efficiency demands and consumer preferences, the auto financing industry is shifting toward end-to-end digitization and automation. Today’s digital transformation involves AI and smart automation through intelligent document processing (IDP).

In fact, 86% of financial services IT and line-of- business executives consider AI to be very or critically important to their business’s success in the next two years, according to Deloitte. They see the potential for technology to answer specific industry pain points, including:

• Ballooning operational costs: Manual processes are time-consuming and resource intensive. Finance companies are spending too much time and money on document verification, data entry, and communication with dealerships.
• Lengthy auto loan funding cycles: Delays in document review, validation, and decision-making prolong turnaround times. This affects customer satisfaction and dealer relationships and detracts from a bank’s business efficiency.
• Manual processing errors and increased risk: Mistakes in manual data entry, missing information, or miscommunication can result in rejected applications or incorrect loan terms. Errors lead to extra work, unhappy dealers and consumers, and potential financial losses.

Companies that have deployed modern technologies say cost and other barriers to adoption are falling. It is becoming easier to implement and integrate solutions.

To learn more, download the whitepaper below.