NEW YORK—How well are automotive dealers and lenders using digital solutions that enable swift workflows? A new report from Wolters Kluwer is sharing some insights.
The company said it commissioned an industry survey of 2,000 professionals during May to better understand where automotive, dealer, and auto finance professionals are still finding barriers in adopting more digitized solutions for back-office documentation processing.
According to the results, the greatest number of respondents had implemented automated workflows into portfolio analysis (25%), followed by payment processing (21%), and reconciliation (17%).
“However, only 26% of lender executives said they are processing data from digital solutions to enable automation for business functions and workflows, and another 43% said they were unsure if this was taking place,” Wolters Kluwer said. “Despite these numbers, 75% said it is either somewhat or very important to create a fully compliant digital strategy that automates all workflows and back-office processes.”
One ‘Concerning’ Issue
What’s concerning, the company said. Is that 23% of executives said they are either not confident that they can achieve this, or they are not sure.
“Achieving a fully digital finance experience is still a challenge for many auto finance companies, with 23% saying they still require greater compliance and adherence to federal regulations to achieve a fully digital experience,” the company said.
Wolters Kluwer reported another 20% said they still need to create a more seamless transaction experience, followed by a more consistent funding process (16%), and securitization and asset monetization (15%).
“This is also important because less than 8% of executives said they are actually fully digital, and roughly a quarter of lender executives surveyed (26%) said at least half of their loan documents are still paper-based,” the company said.
Furthermore, added Wolters Kluwer, 38% of lender executives said they are still using physical mail to share loan documents with customers, while 35% said they are utilizing email.
A ‘Lot of Challenges’
“By now it is clear that professionals throughout the automotive and auto finance value chain understand the importance of having a digital presence, but many still find a lot of challenges in deploying a fully digital ecosystem for the entire process,” said Tim Yalich, head of auto strategy for Wolters Kluwer. “Our latest survey provides aclearer picture of not only the additional education needed to build digital strategies for automotive, but also the need for deploying the right resources that will complement customer facing digital experiences with back-office automated processes.”
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