Automation for auto lenders: The challenges, solutions, and right way to verify borrower auto insurance, income, and employment

In the highly competitive auto lending industry, staying ahead of the curve is essential. Auto lenders are continually striving to offer the best rates, expedited financing processes, and exceptional customer experiences. To excel in this fast-paced environment, these lenders must leverage technology and innovative tools to streamline their operations. 

 

Challenges facing auto lending industry 

Lenders are constantly navigating a dynamic market while striving to improve their internal processes. As market factors such as rising interest rates are undoubtedly significant challenges, internal inefficiencies can be just as detrimental to the lender's success. Outdated workflows, human errors, and the need to coordinate with multiple parties often slow down processing and closing times, negatively impacting the customer experience. This is particularly evident in industries like mortgages and auto loans, where manual processes, like contacting third parties and borrowers, result in unnecessary time, money, and effort expended per customer.

For instance, traditional lender processes often involve reaching out to various contacts, including borrowers, their employers' HR departments, or high-cost third-party services like The Work Number for income verification. Additionally, the back-and-forth communication with car insurance companies to verify coverage can be time-consuming and cumbersome.

 

Using technology to overcome challenges

Technology has evolved to mitigate these challenges. Modern data gathering tools and technologies offer a way to automate and streamline these processes, significantly improving efficiency and customer satisfaction. The following sections explore what lenders are looking for and how automated solutions like MeasureOne can provide a competitive edge.

 

The 3 reasons why auto lenders need automation for borrower verification

  1. Lower Operational Costs: Automated data collection technology replaces manual data entry with APIs and customer portals that gather and format consumer data. This transition reduces operational costs by decreasing the need for manual data verification and simplifies the interaction with third parties.
  2. Faster Processing Times: Automation minimizes the collection of physical documents, phone calls, and the potential for human errors, leading to faster processing times. This acceleration in the verification process ultimately results in quicker loan approvals, saving time and money, and delivering a superior customer experience.
  3. A Trusted Partner: In an era of increasing data security concerns, lenders need a reliable partner with robust data-security measures and seamless integration capabilities to handle various data-collection needs consistently.

 

The solution: MeasureOne's automated data verification

MeasureOne offers automated income and employment for auto loans and insurance verification for auto loans all under one roof, streamlining the verification processes and addressing the needs of auto lenders across the board.

 

The key benefits

Instant Information: MeasureOne's technology enables lenders to immediately access up-to-date, secure information regarding borrower home and auto insurance policies through an integrated borrower workflow. This feature eliminates the need for time-consuming paperwork and follow-ups, expediting the verification process.

Expedited Approvals and Increased Conversions: By streamlining the income and insurance verification process, MeasureOne accelerates loan approvals, reducing the likelihood of denials. This enhanced eligibility process benefits both lenders and borrowers, leading to increased conversions.

Streamlined Operations: MeasureOne significantly reduces manual work and the potential for human error during the verification process. Lenders can rely on the accuracy and efficiency of the automated system, ensuring a smooth and transparent operation.

Let MeasureOne be your solution for automated borrower verification. Try 30 days for free when you sign up today.