How clearer, acronym-free guidance on all docs you require speeds financing approval, contracting, and funding.
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And we’re back.
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Welcome to another episode of Small Bites.
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I’m Greg Payne, Marketing Manager with Cox Automotive, and I’m joined once again by my colleague Andy Mayors, AVP of Dealer Track Lender Solutions.
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Andy, I’ve really got to say that I’ve been joining these Small Bites sessions we’ve done so far.
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Now in our last video, we talked about alternative deal structures and you mentioned that the next step in improving the deal making and funding process is something called structured steps.
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Now tell me what exactly do structured steps enhance?
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Is the dealer track credit application network?
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Is the dealer workflow?
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Is it the lender workflow?
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I’m not quite sure.
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But I do know that whatever it is, it’ll be be beneficial for all parties, lenders, dealers and consumers, am I right?
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Absolutely, Greg, you’re getting good at this stuff.
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Spend more time together.
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You’ll be an expert in your own right taking out a job, probably.
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But no, I mean structure stips, you know, as we, as we talk about our evolution of auto finance, you know, a lot of things that I always talk about as operational efficiency for both the dealer, the lender, the consumer and structure stips is a great example of where we can improve what we communicate back to both dealers and consumers on a digital journey.
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Traditionally, as most people know, stipulations have been very cryptic, sometimes very easy for a buyer to send to a dealer back POI or POR or something like that.
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But as we looked and as we’ve been talking about since consumers are now part of this journey, it’s really important not to just send back POR, but it’s also important to say that that proof of residence could be satisfied by a specific document.
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So what structured steps are is really taking that shorthand that our our buyers have always provided back to our dealers and turning that into a consumable piece of information that a consumer and a dealer can use.
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And the reason it becomes important is not only are consumers doing things online, we’re asking consumers now to provide stipulations like, hey, proof of insurance or proof of income or proof of residence.
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Well, if you just tell a consumer, provide proof of residence and don’t tell them what document it is, that satisfies that it’s going to be hard for you to get the right documents.
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So structured steps allows our community to share the right document information throughout the process.
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So for the, for the consumer, you know, when they’re online and, and some people may be asking for these documents even before they got an approval, but you know, let the, the consumer know what document they have to upload to get their, their, their processing done quickly.
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I’m reminded recently of me trying to get my Real ID.
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And when I went to Real ID, which I’m sure everybody’s done, they were very clear on, hey, I need a proof of banking.
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You know, and they said these are the valid banking statements or I need a proof of whatever.
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So that’s really what structure steps is.
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It’s really a communication tool that allows everybody to know what’s required.
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And then it becomes really important when we talk about our next section, which is stip delivery, because when we actually want to send those stipulations to a lending partner, we know the actual documents that will satisfy those stipulations and speed up the entire process.
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So that’s really what structure Stips is all about and it’s really a very easy thing for our lenders to implement.
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It’s part of our standard response transaction back to in a decision.
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And you know, I think as we talk about step delivery and things like that and automation, Structure tips becomes a good foundation for that.
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Excellent.
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Andy, thank you so much for that download on Structure Steps.
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It sounds like it’s a great enhancement to streamlining the credit application process.
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And I want to thank you again for just providing your expertise and knowledge to myself and the lender audience.
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And I also want to say a big thank you to everyone who’s tuned in today.
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So join us next time for our next Small Bytes episode where we address steps, upload and delivery.
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Now, if you have any questions about structure, steps or any of the topics that we’ve talked about beforehand in other previous Small Bytes episodes, please reach out to a lender solutions experts.
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Until next time, have a great day.
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Thanks, Greg.
