This article was originally published on CUInsight.
Interesting times continue for auto lenders and service providers. There’s been a lot of volatility so far this year with supply shortages and increased auto values, including the appreciation of used cars values. Our industry has seen a lot of change, some happening rapidly—from insurance coverages to total loss claims to federal and state regulations — that lenders are needing to quickly adapt to. These changing needs demand new, innovative solutions for technology integration, consumer education, and adaptable risk management.
As the pandemic continues, it’s important lenders recognize that we’re not returning to a ‘2019 normal’, but remain forward-focused on preparing for a ‘2022 new normal.’
3 Ways Auto Lenders Can Innovate their Risk Management Program
Consider Technology Expansion
Demand for digital communications and tech-driven solutions has skyrocketed in the midst of the pandemic. While a lot of the emerging solutions were already in motion, the onset of COVID-19 accelerated what was already happening and prompted more technology-focused products and services that help integrate the whole consumer process from start to finish. Some examples include, artificial intelligence virtual assistants, automated insurance and loan tracking, and data management interfaces.
Across the financial industry, there’s work among institutions and providers to create more seamless processes and channels of communications among lenders, consumers, and providers. Particularly, as lenders are left to adjust to securing staff and address new, changing regulatory guidance, technology tools can be instrumental in innovating your risk management strategy.
Read the full article here.
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