Chatbots. Artificial intelligence. Voice prompts. Phone trees. Digital avatars. Truly, technology is advancing at a rapid pace, especially in the retail automotive lending space. One example is the use of automatic approvals to increase loan volume in the dealership. Will technology sound the death knell to human interaction in the lending office? Or, will it open new ways to engage with a digitally savvy population? Consider the ways technology can impact the human element in auto lending.
Impact on Human Resources
Experts have long predicted technology will someday replace many of the jobs done by humans. However, history has shown that as jobs become more automated, new opportunities open up. Today’s students are encouraged to prepare for technology-based finance and banking jobs like data analysis and computer programming, whereas four decades ago they would have been steered toward a more manual, hands-on position. Technology has also greatly improved worker productivity, increasing the number of daily transactions.
Impact on Customer Outreach
Thanks to social media and the internet, reaching consumers is easier than ever. It is also a great equalizer, enabling even the smallest lender to compete with large, multinational institutions for auto lending business. Using do-it-yourself website tools and social platforms, any lender can engage with target customers, position their offerings, and build relationships. The digital playing field also comes with reduced marketing costs that create parity between large corporate lenders, smaller local institutions and even innovative startups. Continue reading