Automating Auto Loans for Easier Loan Processing

Automating Auto Loans for Easier Loan Processing

The process of getting an auto loan can be complicated and slow, and that can be a problem for car leasing companies. The slow pace doesn’t sit well with customers who want things done quickly. As a result, many potential customers just walk away, looking for faster options elsewhere.

In today’s world, everyone expects quick service and doesn’t want to wait around for a loan to get approved. This situation puts a lot of pressure on car leasing companies to figure out a faster way to handle loans.

This is where Intelligent Process Automation, or IPA, comes in as a game changer. It’s a smarter way to speed up the whole loan process, making it faster and simpler. By using IPA, car leasing firms can move quicker, keep up with customer expectations, and stop losing out to the competition. It’s a win-win for both the companies and customers, making getting a new car less of a headache and more of a joy. 

Now, let’s identify some of the pressing challenges in automotive loans that demand such advanced solutions.

What Are Some Current Challenges In Automotive Loan Processes?

Based on our experience, we’ve found that lenders in the automotive industry who don’t leverage automation technology face a variety of different challenges. Such challenges often prevail due to the fact that a manual approach is used for processing loans. Some common examples of such challenges include:

Time Consumption

Handling automotive loan requests is a time-consuming process, given that multiple sets of information must be thoroughly verified. We found that such time consumption often keeps lenders from catering to multiple customers, which ultimately transitions into a loss of business.

Human Errors 

Another one of the most common challenges lenders in the automotive industry experience is human errors. Given that auto loan processing involves verifying and analysing complex information, the prevalence of human errors is evident. We’ve often found that such errors have severe negative implications and can often lead to loss of customer trust and revenue, both of which can deter business sustainability.

Poor Customer Experience

The third most common challenge we’ve come across can often prevail as a direct or indirect result of the two mentioned above. Significant time consumption during loan processes can lead to the applicant feeling impatient, resulting in an undesirable experience and the search for alternative options. Similar effects can be seen with human error, as it can lead to a loss of customer trust.

Fraud

As far as loans are concerned, recent reports have shown that the fraud rate has continued to increase. Within the automotive industry, events pertaining to fraud can prevail due to acts of document manipulation and identity theft. Lenders using a manual approach for loan processing may find identifying such fraudulent attempts difficult, given they can slide past human verification efforts.                                                                        

How Can Rinkt Intelligent Process Automation Help?

We helped numerous businesses in the automotive industry achieve their goals and objectives by empowering them with industry-leading automation tools. The intelligent process automation solutions we offer allow businesses to streamline operations with ease.

One of the IPA solutions we offer, which can help, is the Rinkt DocBot. It’s an AI-powered document processing automation tool that comes equipped with different features such as data extraction, pattern recognition, and more.

Let’s look at how these features can help facilitate automation for loan processing in the automotive industry:

1.   Data Extraction

Lenders in the automotive industry have to analyse numerous different documents and extract data from them. Doing so with a manual approach can be time-consuming and may lead to human error. In addition, such factors may also contribute to a poor customer experience.

Using the Rinkt DocBot, on the other hand, can help them extract information from data documents and images. We’ve ensured that the DocBot can be trained with only 5 samples, making it a feasible option for rapid deployment and utilisation.

2.   Pattern Recognition

Automotive lenders often have to organise documents based on predefined categories to ensure seamless operations. However, if there’s a surge in auto loan requests, such categorisation approaches using manual protocols can prove to be inefficient.

The Rinkt automation technology is capable of recognising patterns in new documents based on similarities with existing ones and streamlines such tasks for greater efficiency.

3.   Recognize text within a digital image (OCR)

Document verification for automotive loan processing can be challenging and time-consuming, given the minute details that are involved. We’ve found that inefficiencies with such protocols often lead to loss of customers. In severe scenarios, it may also lead to fraud.

Leveraging DocBot’s OCR capabilities enables lenders to recognise handwriting for images and scans, which can streamline the verification process and help prevent fraud pertaining to applicant signatures.

 

The use of IPA significantly reduces the time required to approve a loan by 55%. This efficiency boost not only empowers lenders to process 20% to 30% more loans but also significantly shortens the waiting period for consumers, allowing them to enjoy their new vehicles sooner.

 

Key Takeaways

Automotive loan processing is a complex process that can be time-consuming and is often prone to human error. In addition, such an approach can also lead to a loss of customer trust and may not be effective for detecting fraud.

Using solutions like the DocBot from Rinkt Intelligent Process Automation can help automotive lenders streamline processes and improve operational efficiency. Get in touch with us today and learn more about how we can help you transition to excellence!pose