Ivendi outlines strategies for modernizing motor finance operations
Ivendi has released a white paper detailing three strategies for dealers and financial providers to modernize their motor finance business.
These strategies aim to address the industry’s shift towards digital first finance experiences and tough compliance demand.
The white paper highlights the turning points of an industry where traditional financial models and outdated processes are no longer effective.
Buyers now expect a seamless, digital-first experience, but compliance demands are becoming more stringent.
Many dealers and lenders still rely on legacy systems, creating friction in their customer journeys and potentially losing approvals, customers and revenue.
Ivendi suggests that dealers need to prioritize consumers, increase efficiency through technology, and recognize the benefits of compliance.
Traditionally, motor finance has followed a dealer-to-render model where provider options are limited.
However, modern buyers expect selection, speed and transparency. According to the Motor Finance Solutions provider, companies that offer these attributes are more likely to succeed.
By adopting a consumer-first approach in a multi-render model, dealers and lenders can provide immediate finance comparisons, increase approval rates, improve compliance and transparency, and improve the overall purchasing experience.
Meanwhile, digital tools can eliminate bottlenecks, reduce administrative work, enhance consumer travel, and help businesses enter into more transactions.
Multi-render platforms can simplify the loan application process by eliminating the need for manual data entry, while digital self-service finance solutions allow buyers to independently evaluate their financing options and enhance user engagement.
Additionally, AI-based analytics help lenders and dealers make more informed decisions, reduce operational costs, and increase approval and conversion rates.
In the case of compliance, he said FCA’s consumer obligation regulations position compliance as a business differentiator.
Consumers are more likely to choose a dealer or lender who prioritizes transparency, fairness and clear communication.
Key compliance strategies include embedding clear lender-specific finance content into the buyer’s journey, using real-time eligibility checks for informed decision-making, and implementing digital record keeping to ensure FCA compliance.
December 2024, Ivendi and Close Brothers Motor Finance collaboration Streamline motor finance for dealers and customers.
“Ivendi provides an overview of strategies for modernizing motor finance operations,” was originally created and published. Online Motor Financea brand owned by GlobalData.