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Majority of Customers Report Complaints in Lengthy Vehicle Financing Processes from Lenders
Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, today announced the results of its latest survey, showing 79.3% of C-Suite finance executives polled overwhelmingly reported their organization was most in need of Artificial Intelligence (AI) Integration in their automotive lending processes.
Although it’s no surprise businesses are increasingly interested in automating processes and utilizing intelligence tools, respondents prioritized AI integration business transformation over cost reduction, process improvement, workflow management, product launch, digitalization and documentation needs.
The survey revealed a glaring need for process automation for financial organizations, especially automotive lenders. Approximately 81% of lenders polled said they are not currently using an online digital origination channel that leverages process automation. However, most lenders (36%) said their current system struggles with operational issues and nearly half (43%) said compliance requirements are also the leading reason why they would consider a process management solution.
When asked what specific challenges they faced in loan processing, 52.6% admitted the process was too complicated and required too many steps. Twenty-three percent said the process takes too long, and 27.4% said the system was not easy to navigate.
Furthermore, Inovatec also surveyed a group of consumers who recently purchased or sold a vehicle and asked about their experience surrounding vehicle financing. Among the 125 consumers polled, 72% of sellers stated that once a buyer was interested, securing financing took the longest amount of time; followed by transfer of title or paperwork and price agreement. When asked what their biggest complaint was in financing their last vehicle, 59.2% said the process took a long time from start to finish, and another 21.4% said there were too many steps involved.
“The survey sheds light on the fact that lenders and consumers both recognize the need for more efficient lending processes and procedures in the marketplace,” said Bryan Smith, VP Sales & Marketing at Inovatec. “It’s clear that artificial intelligence process integration is a top priority for lenders. The strategic implementation of AI and machine learning tools enables lenders to focus on improving the finance process for each individual customer in a more seamless and accurate fashion.”
About Inovatec Systems Corp.
Inovatec Systems Corporation is an industry-leading provider of cloud-based software solutions for automotive and equipment financing institutions. The seamless platform is ideal for external partner and customer communications through a robust ecosystem that streamlines the process of crediting, auditing, funding and income verification for finance applications. For more information, please visit https://www.inovatec.com/.