In a changing world, automation and ease are the watchwords, with businesses looking to streamline their processes as much as possible. The message is clear: optimise or be left behind, and the world of car finance is no different. This article focuses on digital payments and the role of e-contracts in a seamless customer journey for car buyers, and how your business can make the most of this.
In this blog…
The impact of technology in car finance
A Changing World: The Impact of Technology in Car Finance
The latest generation of finance customers expect faster, more personalised services (White Clarke Group, Motor Finance Online). Gone are the days of manual processes and paperwork; customers now want a seamless digital experience. The opportunities to maximise online power are endless, from fully online customer journeys to AI-delivered support and vulnerability protection. E-sign is just another fantastic tool to streamline the digital customer experience.
E-Contracts & E-Sign
E-contracting can be a fantastic tool to automate the end journey for car finance customers and streamline a somewhat archaic process. Removing manual processes behind contract signing and replacing with E-Sign can massively reduce waiting times and get drivers behind the wheel of their new car as quickly as possible. E-sign has been adopted across the global car finance industry and has seen customers receive quicker outcomes at their convenience.
According to OneSpan, the average end time of a car finance agreement can take up to 30 minutes, a sizeable chunk of time to be focused on just one car finance agreement, especially when you could be working on several applications at the same time. This is perhaps the most robust case for E-sign: the ability to complete multiple applications simultaneously and transform your approach to the final application stage. E-sign can provide the means to complete finance agreements outside operating hours, which may suit customers who have been working during the day. E-sign is convenient and straightforward, a massive weapon for car finance providers in an ever-evolving digital landscape.
The Advantages of E-Sign in Car Finance
- Efficiency and Speed: E-signatures contribute to streamlining the customer journey. This is essential in today’s world, with customers put off by slow, clunky processes. Develop a streamlined customer journey by adding e-sign and gain an edge over competitors.
- Convenience: As mentioned, e-signatures can be completed at any time and, more importantly, at a time that suits customers. You will see approvals outside of operating hours and increased customer satisfaction, with people able to complete the car finance process on their terms.
- Environmental Impact: Online processes remove the need for physical materials and transportation. At a time when the car industry is under scrutiny for its environmental impact, incorporating digital strategies is an easy win on the path to a greener business.
The Risk of E-Signatures
E-sign isn’t without its risks. E-sign can be susceptible to fraud, a growing issue in the car finance industry. We recently looked at the rise of fraudulent bank statements in car finance and feel the risk of fraud is no strangers to e-sign. As a car finance provider, it is your duty to provide adequate support and resources to customers who may be entering vulnerability and have strict processes to detect fraud. One way of doing this is by offering open banking as a verification tool. At Marsh Finance, we champion open banking as a way for customers to provide realistic affordability information as an alternative to more archaic methods. Open banking looks at a customer’s transactions over a set period instead of more traditional measures to get a more customised view of a person’s finances, which can guard against fraud risks.
Another risk is that your company processes aren’t suitable to support the implementation of e-sign. Shifting from manual processes to a digital business doesn’t happen overnight, so careful consideration must occur before delving into the world of online purchasing. A full review of your infrastructure and adaption to a digital approach is essential to succeeding with e-sign.
The Verdict: E-Sign
In summary, the integration of e-signatures into the car finance process signals a significant step forward in the evolution of car purchasing. This technology not only streamlines the transaction process but also enhances the overall customer experience. By adopting e-signatures, dealerships and financial institutions are not only keeping pace with digital transformation but are also demonstrating a commitment to efficiency, security, and customer-centricity. As we move further into the digital age, e-signatures stand as a beacon of innovation, simplifying complex processes and steering the car finance industry towards a more agile and responsive future.
Maximise Your Industry Knowledge with Marsh Finance
A market leader with over 50 years of experience, Marsh Finance provide an opportunity to partner with a well-established, versatile car finance provider. With innovation at our core, Marsh is constantly looking to maximise efficiencies, and our dedicated valued partnership scheme is a testament to this: receive compliance and sales support that will transform your business from experts. Partner with Marsh today and become adaptable to the changing tides of the car finance industry.