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Speedpay® Pulse Reveals Key Auto Finance Borrower Trends

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The below article is part of AFSA's Business Partner webinar program. Speedpay will feature it's webinar on Tuesday, November 13 at 2:00 p.m. ET, entitled Speedpay® Pulse: Consumer Research Reveals Preference for Traditional Payment Options. Registration is open now.


How can auto finance billers educate consumers to feel more comfortable with emerging payment methods without losing sight of their traditional preferences?

For industry professionals and consumers alike, innovation in the payments industry might feel like it’s at an all-time high, with new artificial intelligence (AI) and mobile technologies and tools emerging every day to make the bill pay process faster, easier and more convenient for consumers.

However, according to Speedpay® Pulse, a consumer billing and payments trends survey of 3,000 U.S. adults responsible for two or more household payments a month, consumers still prefer more traditional payment options, like paying on a biller’s website, to the variety of new digital offerings. These findings are especially true for auto finance consumers, who on average pay their auto bill more frequently through their biller’s website compared to other payments, like their mortgage or credit card bills.

This poses a challenge for auto finance billers: How can they educate consumers to feel more comfortable with emerging payment methods without losing sight of their traditional preferences? After all, new technology should add speed and convenience to consumers’ lives, not confusion and apprehension.

Clearly Communicate New Offerings

New technology can be intimidating, especially considering the speed at which products and tools are released for public consumption. Jargon such as “the cloud” and “AI” tossed around by industry leaders and the media can often lead to more confusion.

For example, according to data from Speedpay® Pulse, fewer than half of consumers say they’re confident they are familiar with AI. In fact, roughly the same number (49%) say they’re too unfamiliar with AI tools to pay a bill using it.

For consumers to feel more comfortable and familiar with an emerging payment method or technology, auto finance billers should remove the mystery surrounding it. It’s up to the biller to clearly explain through consumer communications what a new product is and how consumers can start using it. Billers should tout the benefits of these tools, including speed and convenience, to demonstrate how they can make consumers’ lives easier when it comes to making an auto loan payment.

Update Traditional Payment Tools

While some consumers are open to adopting new technologies, others prefer to stick to more conventional methods of bill presentment and payment – especially in the auto finance industry. Diversifying and expanding payment methods is all about giving consumers choice, but that doesn’t mean letting traditional payment methods fall to the wayside.

In order to cater to consumers who are most comfortable paying their bills in a traditional way, like on their biller’s website or by phone, it’s important that the customer experience is top quality. That means keeping more traditional means of bill pay free from bugs and technical issues and providing excellent consumer service over the phone.

No matter how an auto finance consumer chooses to pay, it’s up to payment providers to deliver the best experience possible to encourage consumers to make timely and consistent payments – a winning solution for everyone involved.

To learn more about consumers’ auto finance payment preferences and other findings from the Speedpay® Pulse, click here.

Speedpay® Pulse Reveals Key Auto Finance Borrower Trends
Oct 12, 2018

The below article is part of AFSA's Business Partner webinar program. Speedpay will feature it's webinar on Tuesday, November 13 at 2:00 p.m. ET, entitled Speedpay® Pulse: Consumer Research Reveals Preference for TraditionalRead the rest

Top Five Lending Trends for 2019
Oct 09, 2018

The following article is part of AFSA's Business Partner Webinar Series. You can learn more during PayNearMe's webinar on Wednesday, Oct. 17 at 2 p.m. ET entitled Top Five Lending Trends for 2019. Registration is open now.


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SGA Whitepaper Covers CA Privacy Act
Oct 03, 2018

AFSA’s State Government Affairs (SGA) team this week published its white paper on the California Consumer Privacy Act. The paper takes an in-depth look at California's new privacy law, which was signed by Governor Brown this JuneRead the rest

AFSA Members Should Qualify for Tax Deduction
Oct 01, 2018

On Oct. 1, AFSA wrote to the Internal Revenue Service (IRS) asking that it clarify that indirect finance companies qualify for a 20 percent deduction the way direct lenders do.

The IRS issued proposed rules establishing regulations to implement… Read the rest

Connecticut Announces No Action Position on Collection of Race Data Following AFSA Letter
Sep 28, 2018

On September 28, the Connecticut Department of Banking issued a memo announcing a no action position regarding Section 97 of HB 5490/Public Act 18-173, which amended state law to require sales finance companies to collect and maintain records… Read the rest

Why finance companies are using verification tools at record levels
Sep 27, 2018

The following article is part of AFSA's Business Partner Webinar Series. You can learn more during Equifax's webinar on Oct. 2 at 2 p.m. ET entitled Verify to Clarify – Know More About Your Customers to Help Grow & IncreaseRead the rest

SGA report previews pros and cons of battleground gubernatorial races
Sep 26, 2018

AFSA’s State Government Affairs (SGA) team this week published its White Paper on the 2018 Gubernatorial Elections Preview, examining the races in states that will hold elections.

In 36 states with elections, Republican governors… Read the rest

Looking Ahead: Perspectives from the BCFP’s Office of Innovation
Sep 24, 2018

Paul Watkins, Director of the Office of Innovation at the Bureau for Consumer Financial Protection (BCFP), is the luncheon speaker Oct. 24 at AFSA’s upcoming Annual Meeting.

Watkins will shed light on the Bureau’s plans in the… Read the rest

Webinar to Look at Income Verification
Sep 20, 2018

Join AFSA on Tuesday, October 2 at 2 p.m. ET for Verify to Clarify – Know More About Your Customers to Help Grow & Increase your Portfolio Profitability, presented by Equifax.

Verifying income and employment is an essential Read the rest

Federal Issues are the Focus of AFSA’s Second Podcast
Sep 20, 2018

The second podcast in AFSA’s recently-launched AFSA Today series is available at afsaonline.org/podcasts.

In this podcast, AFSA’s Jack Ferry, Vice President of Communications, interviews Bill Himpler, AFSA’s Executive… Read the rest

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