Enabling next-generation digital motor finance solutions boosts growth and helps providers stay up to date with customer demand.
The motor finance sector revealed good growth figures earlier this year, according to Finance and Leasing Association data. Volumes were boosted by 12% from June 2020 to June 2021, this despite issues around the supply of new cars because of semiconductor chip shortage. People are looking for cars and opening their wallets.
Electric car manufacture has turned a corner, increasing consumer excitement. I’ve taken a spin in a few EVs over the past few weeks and they’re terrific! What isn’t so terrific is realising that many dealerships I’ve spoken to are stuck using legacy systems to process legacy finance options. The future may have arrived via the electric car, but motor finance still has some catching up to do.
Motor finance providers know they need to become more agile. They’re not blind to how quickly the world is moving, and how people have become accustomed to digital processes that are fast and easy to use. In the past couple of years alone, consumers have changed their ownership habits, with financing preferable to outright ownership. Alongside these changing habits, the way financing happens is quickly becoming a digital-only process. This has left large swathes of the motor finance sector twiddling their thumbs and scratching their heads. Yet, it doesn’t have to be like this.
Digital services for tech-savvy customers
If you’re a motor finance provider reading this article, rest assured that this is actually an opportunity to transform your business. Once you put the customer at the centre of your digital transformation, you can make significant inroads into changing how you interact with them. From streamlining the financing process to optimising traditional customer journeys, you can use motor finance software that enables customers to select, customise, finance and drive in one slick, secure process.
Let’s look at two obvious benefits that digital services provide for motor finance providers, which cut costs and improve the customer experience:
Outgrowing a small customer base. Maintaining affordable growth is hard. Motor finance providers can’t simply hire staff at the rate they want to grow, and building digital services from scratch is too much of an outlay. Finding the right digital platform provider with a cost model that grows accordingly will deliver the right services, at the right time.
Keeping up with change. Customers want easy-to-use services that enable them to make informed decisions about vehicle financing. Legacy systems and processes are no longer fit for purpose. The right digital platform delivers payment and self-service options, digital onboarding, instant settlement quotes, and much more.
These are just two of the many benefits switching to digital services provides, and they’re bellwethers across many industries, not just motor finance. The provision of digital services will help you grow, and motor finance customers will thank you for it.