Solve the challenge of manual auto loan financing with a unique, secure, AI-powered document management platform.
If anyone understands the scale, it’s auto financiers. If you are one, you may know that around the world, it is estimated 92.4 million vehicles were sold in 2023. About 80% of new U.S. vehicles are financed. This means that every year you process and finance millions of car loans and their supporting documents, often still in paper format. Unfortunately, this also translates into millions of hours of manual processing spent on the 40 to 80 pages of documents per loan, as well as checking those documents for completeness, corrections, and compliance.
On average, your car financing process can easily require more than two hours of manual labor per loan. These two hours include manual data entry, making copies, verifying identity, validating Know Your Customer (KYC), and signing, reviewing and filing documents. At scale, manual and labor-intensive lending processes cost you millions of dollars in operating expenses each year. At the same time, these time-consuming and inherently error-prone manual processes can degrade your employee and customer experience and introduce additional compliance risks, further increasing costs. Additionally, physical documents cannot scale, which limits your potential.
That’s why automotive financiers are accelerating the adoption of end-to-end digital and AI-powered intelligent automation. After struggling with manual processes and physical documents for decades, AI is rapidly advancing solutions and urgency. It is becoming clear that change is imperative for future viability – to reduce costs, gain efficiency and achieve scalability. A Deloitte investigation reveals that 86% of financial services IT leaders believe AI will be very or critically important to their company’s success over the next two years. For automotive financiers, digitalization has now become essential.
Run forward – with caution
As digitalization accelerates to transform the auto loan process, adoption is being met with caution. Data ingestion, when automated, can save 30 to 40% hours spent on manual data entry, bringing AI-driven process efficiency and the ability to automatically capture, summarize and translate data. Yet perceived risks regarding the transparency and validity of data from external artificial intelligence (AI, including generative AI) sources persist. Exercising great caution, automotive financiers often launch AI-driven digitalization with internal processes rather than external, customer-facing processes.
This caution comes from a good place. Customer experience is a top priority for automotive financiers. Financiers, anchored in a highly competitive industry, recognize that money is personal and therefore trust is essential. Ironically, implementing AI-driven deployments at scale can improve customer experience and increase personalization and responsiveness. Yet customer-facing processes are often the last area where AI is deployed.
At the same time, automotive financiers face strict regulatory requirements and must protect data privacy and ensure compliance. This is underscored by the need to protect customers’ personally identifiable information (PII) in a heavily regulated industry that faces increasing levels of fraud and cybersecurity risk. Often, automotive financiers leverage Human-in-the-loop (HITL) to make their staff more efficient through automation while minimizing customer experience vulnerabilities. Other safeguards, built into modern end-to-end digitalization solutions, help mitigate risks, enhance security and streamline processes.
Learn more about an end-to-end auto loan toolkit,
Iron Mountain Digital Auto Lending Solution