NEW YORK—The transition from paper-based auto financing to digital continues, according to the latest data from Wolters Kluwer.
The company said Q1 results and analysis from its Auto Finance Digital Transformation Index, which tracks the rate at which auto dealers, service providers and lenders are moving to digital back office processes, showed digital adoption for eContracting increased 32% during the first quarter compared with the fourth quarter of 2023.
Wolters Kluwer is attributing the growth to the seasonal tax-buying period, where more individuals are leveraging tax returns to shop for vehicles.
“This jump also represented the best quarter on record since the company began tracking digital adoption rates. The year-over-year growth increased 37%, and the four-year trend continues to show digital adoption growth of 138% dating back to the first quarter of 2020,” Wolters Kluwer said.
Additional Findings
Wolters Kluwer’s Q1 Auto Finance Digital Transformation Index also shows that the digitization adoption rate for securitization markets has accelerated since the previous quarter. The digital auto loan volume in securitization markets increased 70% compared with the fourth quarter of 2023, while also expanding 14% compared with the same time last year.
Similar to eContracting, this quarterly jump is the largest on record for Wolters Kluwer, and the four-year trend has increased 53%, the company said
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