RP Sanjiv Goenka Group

How AI can Steer a Stronger Future for Auto Finance

Kanta Mishra
Kanta Mishra
SVP - Financial Services
Estimated reading time : 3 Minutes

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Isn’t it amazing how quickly Artificial Intelligence (AI) has gone from the stuff of science fiction to part of our everyday lives?

AI has entered our world in ubiquitous ways. “Hey Siri” almost feels like talking to a friend. When we search the internet, receive emails, use social media, log on to our bank accounts, shop online or stream films, AI is getting us to what we want faster while keeping us safe.

Today’s customers (and employees) expect smart organizations to be easy to do business with. And organizations need to get smart to help them meet and exceed these expectations and boost their bottom lines. They must anticipate needs, respond proactively, minimize effort, and deliver personal and connected experiences at speed and scale.

AI can, and will, transform automotive finance, but our industry has unique nuances, and operates in a complex ecosystem. Winning organizations will be those who put their foot on the gas of the AI engine and use it to overcome process roadblocks, rev up customer experience, and accelerate positive outcomes. Here are three of the key challenges we’re helping auto finance clients to solve with AI:

How can I speed up auto loan origination?

In our fast-paced, always-on world, customers don’t have the patience to wait for the cogs of the loan origination process to turn at their current speed. Innovations in other areas of finance, such as real-time payments, have raised the bar. Customers expect and need their auto loans to be processed quickly too. And, if you don’t deliver, they’ll find a provider who can.

Manual processes are slow, labor-intensive, and costly. Automation streamlines the flow of work and reduces error, but it’s when that automation is coupled with AI that we see a real step-change in customer experience and efficiencies. AI synthesizes customer data—both structured and unstructured—at speed and scale. It tailors the most appropriate and competitive offer to each potential customer and flags missing information or credit issues in real time so your agents can respond promptly and work with customers to find solutions.

AI can help loan providers to cut new customer loan origination times by half. It improves straight-through processing rates by 20-30 percent, matches and remediates stipulations, and creates audit trails. Informed decisions can be made faster, which improves both the customer and employee experience, and underwriters have more time to spend strengthening relationships and compliance.

How do I improve customer experience?

Today’s customers expect a personalized experience. And yet, when it comes to auto finance, they’re often left feeling like a either a credit score or an account number. How do we create the kind of experience that moves a ‘term-based’ customer relationship to a ‘lifetime’ one?

A holistic rethink of the customer journey, with AI at the core, can enable better retention and deliver personal experiences at scale. With AI onboard, you’ll avoid the frustration caused by asking a customer for the same information twice. AI algorithms can create pre-filled forms to simplify applications for your customers, making their lives that little bit easier and encouraging them to do business with you and recommend you to their friends.

Firstsource uses predictive analytics and Machine Learning (ML) to get ahead of potential issues, so you can proactively provide information or support before the customer requests it. When they do get in touch, AI-powered chatbots fast-track solutions, and AI-driven insights empower agents to deliver truly personal customer service. AI brings us Natural Language Processing (NLP) with real-time insight into customer sentiment, allowing our service agents to adapt their approaches and deliver outstanding and consistent experiences every time.

How can I strengthen debt collection?

Rising interest rates, inflationary challenges, and changing personal circumstances mean that more and more people are falling behind on payments.

Empathy is the best way forward. The powerful deep listening capabilities of AI alert you to potential problems and provide valuable insights so you can engage with compassion, reengineer achievable payment plans, and maximize returns.

Our digital debt collections capability is run with AI at the core. It enables personalized, non-intrusive collections that have proven to outperform traditional call-and-collect models.

We’ve recently helped a leading US auto finance lender improve collections by 20% while delivering cost savings of 17%. What’s more, we’ve done so with an empathetic approach which has strengthened customer experience and lifetime value.

Full speed ahead with Firstsource

We steer a pragmatic approach to AI that is affordable, effective, and trusted. Our best-in-class, fully compliant solutions are designed to integrate seamlessly with your existing systems. And they’re available on a pay-as-you-go basis, so you can enhance, and extract more value from, your auto loan value stream.

A partnership with Firstsource will get you where you need to be, fast. We’ll help you accelerate loan origination, win more business by building better customer experiences, drive profits, and engineer a stronger future.

To discuss your auto finance requirements, and to find out more about the full-service support we offer to retail banks, please get in touch with kanta.mishra@firstsource.com


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