Digital technology and fintech innovation in the auto lending space are enabling direct lending to become more popular among car buyers, said, representatives of direct lending companies at the Auto Finance Innovation conference, this week.
In comparing direct and indirect lending, they agreed that the direct lender is able to know more about the customer versus an indirect loan where a dealer “is in the middle of the transaction.”
“A lot of direct lending is refinancing where we get to see customer performance,” said Jennifer Heil Executive Director of Clearlane, an affiliate company of Ally Financial.
The other panelists were Jim Landy, founder and CEO of Springboard Auto; Samuel Lopez, Senior Vice President and General Manager of Carfinance.com; and Francois Peltier, Director of Open Innovation of RCI Bank and Services, a captive of the Renault Group.
The panelists agreed that customer satisfaction is high among customers of direct lenders. Lopez said his company has set up a survey that has two simple questions, but yields a wealth of information. The questions on the survey are: “What do you think (about the process and experience)? And Why?
“Customers tell you what they think and it’s a great way to get information directly from customers,” Lopez said. “The loan application is on our website and customers say they want to “self-direct” through the process until they don’t” at which point they complete the application with the help of a Carfinance.com representative.
Heil said Clearlane’s loan process had adopted a “gamification strategy” where at some point in the process, the applicant is asked if they want to go forward.
Digital technology and fintech innovation in the auto lending space are enabling direct lending to become more popular among car buyers, said, representatives of direct lending companies at the Auto Finance Innovation conference, this… Read the rest
Auto Finance professionals from the United States, Canada and Australia are attending the third annual Auto Finance Innovation Conference this week featuring presentations and panel discussions focusing on the disruptive, but necessary,… Read the rest
Yu-Kai Chou sees the world very differently from the rest of us. But similar to all of us, he thought about what his typical day was like and realized it was divided into two parts: what he had to do (work) and what he wanted to do (play).
His vision… Read the rest
The AFSA Board of Directors has unanimously approved the election of Gary McQuain to the AFSA Board of Directors. He is replacing Bob Bloom on the Board. Bob will remain on the Executive Committee until September 30, 2018.
McQuain is currently… Read the rest
On February 28, AFSA submitted a comment letter to the New York City Department of Consumer Affairs regarding the Department’s proposed rulesfor secondhand auto dealers. The proposed rules would implement Local Laws 197 and 198 of… Read the rest
Mick Mulvaney, acting director of the Consumer Financial Protection Bureau (CFPB), sent a letter to Sen. Elizabeth Warren (D-Mass.) defending himself against accusations that the bureau's actions on payday lending curbs under his… Read the rest
Philip Bohi, VP Compliance Education
On January 3, 2018, the Federal Reserve Board (“Board”) issued for public comment a Proposed Rule affecting Consumer Leasing Regulation M (“Reg. M”). But, you may observe,… Read the rest
Some state examiners feel that multi-state exams are a more efficient process today than they were several years ago. The question is: are they better for industry? Some say worse; others say better. But all agree, there are still some drawbacks… Read the rest
As an industry, we understand the importance of personal financial education and, yet, we know there is opportunity to do so much more. To that end, the AFSA Education Foundation Board is committed to ensuring that it is easy and impactful for… Read the rest
AFSA is pleased to announce its newly enhanced Online Industry Buyer’s Guide that is prominently displayed on AFSA’s Homepage. The Guide provides contact information and identifies the products and services provided by AFSA’s… Read the rest
