The UK Car Finance Mis-selling Scandal & How IDP Can Help
Lightico Blog
by Howard Schulman
1w ago
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
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Evolving Insurance Operations with the Power of Intelligent Document Processing (IDP)
Lightico Blog
by Howard Schulman
1M ago
The insurance industry is experiencing a transformative wave of innovation driven by Intelligent Document Processing (IDP). In an era where efficiency, accuracy, and speed are paramount, IDP emerges as a game-changer, revolutionizing insurance operations and redefining the landscape of document processing. In this article, we delve into the transformative potential of IDP in the insurance industry (we also cover IDP in Auto Finance here) , exploring its myriad benefits and real-world applications can reshape how the insurance industry operates. The Challenge of Manual Document Handling in Insu ..read more
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How to Streamline Auto Loan Origination with Intelligent Document Processing (IDP)
Lightico Blog
by Howard Schulman
1M ago
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
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The AI Powered Intelligent Document Processing (IDP) Revolution in Auto Finance
Lightico Blog
by Howard Schulman
2M ago
The world of Auto Finance is marked by a paradox – while the industry fuels the consumers auto dreams, the behind-the-scenes reality is often obscured by mountains of paperwork. From loan applications, support income documents, welcome letters, to vehicle titles, the sheer volume of documents is staggering. It’s in this labyrinth of paperwork that the Auto Finance sector encounters its most significant challenges — a terrain where efficiency, accuracy, and compliance are not just desirable but imperative. The need for innovation becomes evident in the face of these challenges. Enter Intelligen ..read more
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The Evolution of Full Service Advanced IVR: Meeting Customer Expectations and Needs in Loan Servicing
Lightico Blog
by Howard Schulman
4M ago
The world of customer service and call centers is undergoing a profound transformation, especially in the realm of Interactive Voice Response (IVR) systems. Once considered a standard tool for basic information retrieval, IVR systems are now tasked with meeting the increasingly complex needs and expectations of customers, particularly in sectors like banking and financial services. In times of recession, optimizing the efficiency of loan servicing, particularly around payment due date changes via IVR, should be top of mind for any lender. Traditional IVR setups, with their menu-driven structur ..read more
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Payment Due Date Change Requests and Other Auto Finance Lender Challenges During Economic Recessions
Lightico Blog
by Howard Schulman
4M ago
The impact of the recession is reverberating through the lending sector, significantly influencing how auto lenders manage deferments or payment due date changes together with the broader dynamics of their operations. During a recession, borrowers frequently grapple with increased financial strain, stemming from job loss, reduced income, and heightened living expenses. As a result, they often face challenges in meeting their auto loan obligations, creating a surge in requests for due date changes, or even deferment of payments all together. This elevated risk of default necessitates that lende ..read more
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Help Customers Avoid Bill Shock – Practical Advice For Financial Institutions
Lightico Blog
by Gaby Young
7M ago
As the digital era unfolds, banking and financial customer journeys have grown increasingly, and unnecessarily intricate, often characterized by persistent inefficiencies.  The need to print and send countless documents; convoluted identity verification processes; or the requirement to physically sign forms, to take just three examples.  Beyond telecoms and across industries (including energy, utilities and alternative network services), customers face the unsettling phenomenon known as ‘bill shock.’ This worrying experience can not only impact their financial wellbeing, but also sha ..read more
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Why Captive Auto Lenders Must Rev Up Their Digitization Efforts (& How)
Lightico Blog
by Gaby Young
7M ago
Digital transformation has become more than just a buzzword in the auto finance industry. It has become a necessity for survival and success and captive auto lenders lead the way in embracing technology to enhance their operations. However, there is still a significant gap between the digitization efforts at the top of the funnel and the lingering manual processes that persist at the bottom of the funnel in digital transformation projects. This divide, characterized by hundreds of non-digitized and non-user-friendly complex digital processes, poses various challenges for captive auto lenders ..read more
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Mitigating Bill Shock: Top 5 CX Practices for Financial Service Providers
Lightico Blog
by Rommon Thompson
7M ago
In today’s fast-paced world, customers demand seamless experiences and effortless interactions with financial service providers. However, the reality is often quite different, with customer journeys riddled with inefficiencies, frustrations, and sometimes bill shock. From navigating complex document or ID processes, to grappling with unexpected and unwelcome surprises, it’s no surprise that many customers are left dissatisfied. Bill shock refers to the jolt of surprise, dismay, and concern customers feel upon receiving unexpectedly high bills or fees. This can happen due to hidden charges, unc ..read more
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Harnessing the Power of AI in Lending: Leveraging Artificial Intelligence to Revolutionize Loan Originations Servicing and Document Management
Lightico Blog
by Howard Schulman
8M ago
Artificial intelligence (AI) has revolutionized various industries, including financial services and lending. The digitization of the financial services sector has generated vast amounts of unstructured data in the form of documents, either PDF or images, and volumes of data that can hold valuable insights for businesses, and help make better decisions. However, extracting meaningful information from this data has been a challenge. AI has emerged as a powerful tool to process document based unstructured data, transforming document collection, management and lending processes. In this article ..read more
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