How technology can speed up your auto finance business

Regulatory compliance, product shortages, inflation, and rising prices – these challenges affect all industries, including auto finance.

To remain competitive, auto finance business leaders must continue to evolve. Compared to those with an aversion to change, leaders in technology adoption and innovation grew twice as fast before the pandemic.

Disruption cannot limit market leaders’ adaptability, and technology can help turn challenges into opportunities. So where do you begin?

Five ways you can use technology to quickly adjust to change resulting from business opportunities or external factors:


1. Take advantage of digital technology

Making the commitment to go digital is the first and most obvious step. Over the past two years, the auto finance industry has experienced a great deal of digital transformation.

As a result of the Pandemic, many lenders have ditched paper and manual processes and to converted to digital processes. It has become clear to most that digitization will not go away anytime soon. Although auto finance lenders have varying levels of digital maturity, there are still far too many manual processes that could be automated. By going digital, you can optimize workflows, mitigate risk, save time and money, and enhance the customer experience.

2. Utilize cloud-based and SaaS services

In order to grow your business through technology, we recommend moving to the cloud, and using software-as-a-service (SaaS) solutions. There is a big difference between cloud services, and SaaS.

In a cloud-hosted model, the vendor is only responsible for building and deploying the infrastructure and technology. Then, you are responsible for maintaining the software, implementing the upgrades, testing, security, etc. The vendor builds it and then you manage the rest.

A true SaaS provider takes care of the security, redundancy, backups, disaster recovery, governance, and changes.

The SaaS model also works for companies of all sizes, from small startups using spreadsheets to large companies moving from on-premises systems. It’s common for smaller businesses to think they don’t have the technical expertise, staffing, or revenue to benefit from a SaaS platform. Larger companies often ponder whether SaaS can meet their scalability, performance, and complexity needs.

Every auto finance lender can benefit from SaaS, regardless of their size, sales volume, or digital maturity.

3. Keep standards high

It may have been a differentiator in the past, but legacy technology will hold you back competitively in this modernizing industry.

Data infrastructure and highly customized legacy technology are being challenged by rapid changes in the industry, business models, customer behavior, and technology. Modernizing technology can solve these problems. Due to their standardization capabilities, platforms are the vehicle for modernization.

 4. Implement IT that is always up-to-date

 Cell phone operating systems are a good example. Before cell phones hit the mass market a couple of decades ago, you never really upgraded your phone. The manufacturers at the time weren’t really focused on upgrading their phones.

That’s a different story today. It doesn’t matter if you use an iPhone or an Android device, you receive quick updates every few weeks.

You should expect your fintech software partner to provide continuous updates.

You’ll want to ensure your auto finance software partner embraces evergreen IT, which updates your technology products regularly and seamlessly – monthly if not daily – for some functions. Regular upgrades won’t keep you up-to-date, as technology changes constantly.

5. Automate customer communications.

 The final recommendation is to Communicate effectively with customers. Auto finance business leaders must have the ability to efficiently communicate with customers to properly manage insurance status and disperse notices or updates. However, without the right software in place, it is easy to lose track of customers and fall behind on communications. With a loan management system, your dealership can take advantage of AI-programmed communications that are designed to automatically reply to customers via text or email. This ensures that your customers will receive timely notices and maintain the proper insurance coverage, so your dealership is never at risk.



How a Loan Management System Can Help Your Dealership

As the owner or operator of an auto dealership, you have several responsibilities you must juggle each day. Between communicating with customers, managing insurance notices, running compliance checks, and more, it is easy to become overwhelmed and unorganized without the right loan management system in place. With loan management software, you can streamline operations and simplify your daily responsibilities to reduce overhead, save time, and increase profitability.

At Verifacto, we provide innovative products that guarantee compliance and reduce risk.

Read more


How to Leverage a Smart DMS to Increase Profitability 

When owning and operating a dealership, having an effective dealer management system is a must. However, if your business is using an outdated system that lacks the proper tools to promote efficient operations, it leaves you vulnerable to unnecessary overhead costs, which could decrease profits and put your portfolio at risk. However, with Verifacto’s smart DMS, you will have the innovative technology you need to optimize your performance so you can increase your earnings and drive your dealership to success.

At Verifacto, our smart DMS is guaranteed to provide superior solutions that will increase your revenue.

Read more


What is a Smart DMS?

Almost every dealer uses a dealer management system. It is vital to running your business. The more technology a DMS can provide usually equates to more efficiencies and ultimately more profit for your business. However, most DMS lack the technology that is needed to give you the tools to maximize efficiencies in your business. The difference between a DMS and smart DMS can be determined by what the DMS allows you to do.

Read more


What You Need to Know About Collateral Protection Insurance Companies

If you are the owner or operator of a car dealership or auto finance company, you likely face problems with uninsured borrowers. When these drivers get into auto accidents, your business suffers in a few ways. The customer usually stops paying on the loan, which will eventually result in having to pick up the vehicle.  In addition to getting your collateral back damaged or unsellable, you will eventually have a charge off and lose a customer.  If you are struggling to resolve insurance issues, collateral protection insurance companies will provide the solutions you need to secure your business from borrowers that have deficiencies in their insurance. But how exactly do they help?

Read more


Effectively Communicate with Borrowers Using an Auto Loan Collection System

As an auto lender or insurance company, one of the greatest challenges you face is risk management. The reliability of your borrowers is not always guaranteed and if they are late or delinquent on their car loan payments, you have the potential to lose significant profits. So, how can you best mitigate this risk to protect your investments? With our auto loan collection system, you can use our exceptional PayMinders feature to enhance your communication and collection efforts to ensure the financial future of your business is secure.

With the help of Verifacto, your auto loans will be repaid in an efficient and timely manner.

Read more


Loan Management System: The Next Step After a Loan Origination System

When borrowers apply for a loan at your auto dealership, your loan origination system can be a useful tool for setting up their account and processing their application. However, once this is complete and your borrowers drive off the lot, this system is not equipped to provide long-term loan services to help with communications, risk management and payment tracking. With Verifacto’s loan management system, you can effectively monitor and control every aspect of your loan program to save time, reduce overhead and increase revenue.

At Verifacto, we provide supreme solutions to improve the way your business connects to your borrowers.

Read more


Our Best in Industry Auto Insurance Tracking Technology

If you are an auto dealer, auto lender or insurance company, one of the best decisions you can make for your business is to invest in auto insurance tracking. It not only helps to increase your profits and mitigate risk, but it allows you to effectively track insurance coverage, automate your customer communications, easily store and pull reporting and so much more! However, not all auto insurance tracking is created equally. You want to ensure you choose the right software that meets the needs of your business. With our intuitive technology and premium features, when you choose our software, you are guaranteed to have the most advanced insurance tracking solutions in the industry.

Read more


How to Properly Maximize Your Auto Loan Collection System

With modern technology constantly evolving and adapting it’s led to a massive uptick in automation. Seemingly every industry now utilizes automation within the day-to-day functions of their business. Yet, the industry that has really seen a significant boost from automation has been the auto industry thanks to the powers of an auto loan collection system also known as a loan management system (LMS), which provides exceptional benefits for lenders and an easier way to communicate with buyers.

Compared to other outdated legacy lending systems, an automated loan management system holds a number of distinct advantages including superior customer success, refined decision-making accuracy and all but eliminates the need for paper documents. In order to properly maximize your loan management system, we’ve outlined a few of the benefits an LMS provides and how when paired with the likes of insurance tracking and payment processing can drastically improve your company’s ROI.

Read more


Key Differences Between a Loan Management System and Dealer Management System

Today, the overwhelming majority of new car buyers set up their financing through a dealership, which in turn forces lenders to search for the right dealer management system (DMS) to handle all of their business needs. However, as your business grows so does your list of needs and expenses.

A dealer management system still might manage to work fine in some cases, but the reality of it is that a loan management system (LMS) is far better suited for lenders both big and small. There are a number of advantages a loan management system has over an out-dated dealer management system, most notably coming from the fact that an LMS utilizes a modern cloud platform which provides a seamless customer experience and superior decision-making accuracy.

Interested in taking a more in-depth look at all of the key advantages a loan management system can offer? Verifacto’s proprietary LMS was specifically designed for car dealers to fully manage all of their loans from top to bottom. Before fully diving into the benefits of an LMS, let’s examine the differences between a loan management system and dealer management system and why lenders who still use a DMS for managing car loans could be holding back their business.

Read more