Increasing automobile sales and vehicle finance penetration boost vehicle finance industry, finds Frost & Sullivan's Fleet & Leasing team
LONDON, Jan. 24, 2017 /PRNewswire/ -- Technology and process innovations are impacting the entire car finance industry. Companies and original equipment manufacturers (OEMs) are adopting new business and funding models to reduce operational costs, improve customer experience and drive digitisation.
"OEMs are approaching digitisation through different strategies that combine revamped showrooms, online retail portals, and pop-up stores, thus moving towards directly reaching out to customers," said Frost & Sullivan Intelligent Mobility Senior Research Analyst Neha Makdey. "New funding models like crowdfunding and peer-to-peer lending are making it easier for people with lower credit ratings to qualify for a car loan, thereby increasing car sales."
Car Finance Industry, Forecast to 2020 is part of Frost & Sullivan's Mobility: Automotive & Transportation Growth Partnership Service program. According to the research, technological advancements, economic necessity, and entrepreneurial creativity are fuelling rapid growth in online car finance lending.
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Financing companies embrace new business strategies and innovative technologies in order to gain a competitive advantage include:
- Zuto speeds up car finance by helping the customer calculate the budget, find a financing product, choose a vehicle, and complete the paperwork.
- AutoFi facilitates car sales, financing and insurance online. It streamlines the loan application and approval process, and provides faster, transparent and secure car financing to customers.
- DocuSign helps car lease customers sign lease and insurance contracts instantly, pay for services, and check vehicle history and reports while driving the car.
"Digitisation of the car finance process is resulting in fewer errors, easily accessible information, and faster document verification and loan/lease approval," noted Makdey. "Finance companies are pursuing digitisation to provide faster real-time credit risks assessment and explore various payment ecosystems to gain first-mover advantage in a rapidly changing environment."
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Car Finance Industry, Forecast to 2020
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SOURCE Frost & Sullivan