The old saying is that too many cooks spoil the broth. But when it comes to finding ways for lenders to handle large volumes of paper contracts until the auto industry fully transitions to electronic contracting, some extra help in the “kitchen” can make all the difference.
Taking the measure of the industry
Today, the auto retail industry is rapidly ramping up technology to meet the consumer expectations. Research has shown that 83% of consumers want to complete at least one purchase step online, yet nearly 90% still prefer to sign their final documents at the dealership.
That leaves lenders with a small number of dealers submitting contracts digitally, while the majority still mail in paper contracts. This can cause lenders to develop two divergent sets of processes that can increase the time it takes to process and fund auto loans.
This situation creates some dilemmas for lenders. One is that any efforts to create parallel processes to maximize speed and efficiency for both electronic and paper contract processes will likely become unnecessary within the next few years as consumers and dealers become more open to fully digital deals.
Another consideration is that all dealers want fast funding, regardless of whether they submit contracts electronically or on paper.
The recipe for success
Efficient paper contract processing and funding requires carefully weighed portions of accuracy and compliance at every level of workload.
The ingredients include:
- The ability to handle same-day processing of all funding packages
- Be able to appear to dealers as an “overnight” funder
- Consistent turnaround time no matter the volume of contracts
- 99% data accuracy at all times
- Balanced operational costs and staffing
The right partnership can provide all of those and more to help you provide a five-star experience for all your dealer partners.