Auto finance has long been a realm where speed, accuracy, and compliance collide with complexity. From verifying borrower information to ensuring regulatory alignment, the industry grapples with processes that can be cumbersome and time-consuming. If you are following auto finance news you’ve probably seen that artificial intelligence (AI) continues to evolve, and we are witnessing [...] Read More ..read more

Meeting regulatory requirements is non-negotiable for financial services organizations. From privacy notices to late payment reminders, disclosures and notifications by mail remains a key component in ensuring customers receive legally mandated disclosures and important account information on time. However, relying heavily on physical mail introduces financial and operational challenges—especially as the cost of stamps and [...] Read More ..read more

Picture this: Enterprises spend nearly $2 trillion annually on digital transformation, yet 70% of these initiatives fail to deliver on their promises. Why? The big challenge IT and development teams face is continuous innovation.  A phenomenon known as digital paralysis. like the popularized “Analysis Paralysis,” Large enterprises, burdened by legacy systems and complex processes, find [...] Read More ..read more

Loan Origination Software (LOS) has long been recognized as the technological backbone of the lending industry, enabling lenders to streamline processes, enhance efficiency, and improve the borrower experience. However, as we continue to advance, it’s clear that a LOS alone is insufficient to meet the evolving demands of both lenders and borrowers. Despite advances in [...] Read More ..read more

With the recent Supreme Court ruling in favor of the Consumer Financial Protection Bureau (CFPB), it is likely the CFPB will use the wind off the new victory to dig even deeper into financial regulation than before. The auto finance industry in particular, with its high-volume sales, dealership networks, and a highly securable and movable asset, faces mounting challenges, ranging from stringent compliance requirements enforced by the CFPB to the complexities of loan servicing, strict documentation, and vehicle repossession processes. These challenges are compounded by the traditional, manual p ..read more

Organizations, whether its banks, auto finance, or insurance, face an overwhelming influx of documents as part of their normal customer facing operations. Documents can either be internally generated and completed by customers or employees, or they can be any kind of document with information on it, such as bank statements, pay stubs, invoices, tax forms, basically any kind of document or image sent in by a customer. Manual processing all that information and documents and agreements is slow, error-prone, and a significant drain on resources, financial and otherwise. Especially, when manual en ..read more

The financial services industry, particularly auto finance and banking, has long relied on human expertise to navigate the complexities of loan approvals. But with the rise of artificial intelligence (AI), a new question emerges: should AI take the wheel entirely, or act as a co-pilot alongside human loan officers? Recently at AFS East, Marcelo Brutti President & Chief Executive Officer of Hyundai Capital America said that the company was doing 40% e-funding using Generative AI to enable faster decisions. AI is here to stay, but how soon and at what level of confidence are financial servic ..read more

The amount of information available to organizations today can be overwhelming. Businesses receive a lot of data. This data includes loan applications, insurance documents, emails, reports, invoices, supporting documentation and contracts. Data needs to be processed quickly and accurately, especially when it is ingested by paper or digital documents. This is where Intelligent Document Processing (IDP) comes in. IDP is a technology that uses artificial intelligence and machine learning to automate the extraction of data from documents. IDP uses advanced algorithms to analyze and extract importa ..read more

Lenders are taking a more cautious approach and tightening their lending criteria to mitigate risks associated with lending to today’s financially stressed borrowers. Additionally, government authorities and regulatory bodies may intensify their scrutiny of lending. The auto loan application and underwriting process stand as pivotal stages where caution and regulation are highest. The problem is, many lenders are still using traditional manual methods (“stare and compare” analysts anybody?) of processing loan applications. This often result in inefficiencies, delays, and increased risk of erro ..read more

The UK car finance industry is currently facing a significant challenge as the Financial Conduct Authority (FCA) investigates past lending practices. The investigation centers on the use of “discretionary commission arrangements,” a practice where sales personnel received higher commissions for car loans with higher interest rates. While banned in 2021, the FCA is reviewing loans dating back to 2007, raising concerns for banks and potentially impacting millions of consumers. A Closer Look at Discretionary Commission Arrangements and Potential Mis-selling Prior to the 2021 ban, car dealerships ..read more