AI-generated image from Midjourney representing an auto dealer doing manual paperwork
Calculating income from bank statements and self-employed applicant’s income has traditionally been a time-consuming, manual process often leading to errors and delays in decision-making. Lenders are now adopting new technology allowing dealers to access instantaneous validation, ensuring accuracy and efficiency in their financial assessments during underwriting.
Leading Auto lenders have revolutionized the way financial transactions are managed, transforming the industry by streamlining processes and boosting confidence among users. Dealer portals have been leveraging AI powered technology, such as Informed, for instant verification of pay stubs, which are now an industry best practice, for several years. Now lenders are leveraging accurate calculations of self employment consumers. Dealers are demanding quick and efficient go to market strategies, with customizable interfaces providing clear and transparent results. Today’s dealers expect more and more efficiencies in the F & I departments from all lenders.
Key benefits of real-time validation in dealer portals
1. Competitive Advantage: Stay ahead of the competition by offering a cutting-edge dealer portal that enhances user experience and productivity. Real-time validation increases capture and sets Lenders apart as a leader committed to innovation.
2. Efficiency: Dealers no longer want to wait days or weeks to confirm the financial status of their clients. Real-time validation expedites the decision-making process, reducing processing times and enhancing the customer experience.
3. Accuracy: Eliminate the risk of errors associated with manual data entry and verification. Real-time validation ensures that bank statements and self-employed income information are up-to-date and accurate, minimizing the possibility of costly mistakes.
4. Confidence: Dealers can make more informed decisions with confidence, knowing that the financial information they rely on is current and validated. This leads to more precise credit assessments and better risk management.
5. Cost Savings: Reduce the resources required for manual verification and potential expenses associated with incorrect assessments. Real-time validation helps optimize operational costs.
6. Compliance: Ensure compliance with industry regulations and lending standards by utilizing the latest technology to validate financial information transparently and securely.
Auto finance lenders’ commitment to innovation and user-centric solutions has led to this exciting expansion of the market to individuals that once were rejected by credit policies or were more difficult to validate income and was considered a niche market. Some lenders even charge dealers to do upfront validation of bank statements. In a recent dealer visit in Dallas, Tx an F & I manager said they would give $1,000 dollars to be able to validate bank statements upfront. We understand the challenges faced by our clients in the auto industry and are dedicated to providing them with tools and best practices that empower their success.
Real-time validation in dealer portasl is a game-changer for the industry. Look for a solution that not only simplifies processes but enhances trust and efficiency in the industry. It’s a win-win for dealers and their customers.
An earlier version of this article appeared on Auto Finance News.
With more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa, Jessica Gonzalez is now the Director of Lending Strategies at Informed.IQ.