Survey Reveals Customer Pain Points In Financial Lending Processes, Lenders Heed Operational Efficiency Challenges

Majority of Consumers Report Complaints Related to Time and Efficiency in the Automotive Lending Process

Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, today announced the results of its latest survey, revealing consumer pain-points associated with lenders when financing a vehicle.

When asked about the biggest complaint associated with financing their last vehicle, 56.8% of consumers said that finding a bank or lender that would approve the purchase of the vehicle was their biggest complaint.  An additional 37.8% of those respondents said there were too many steps involved, and 30.6% said the processing time was their biggest complaint.

In a separate survey, lenders were then asked to identify issues and challenges with their current processes in their organization. Over 35.6% of lenders reported operational issues were a struggle, while 28.1% reported issues in lack of efficiency. The findings show a clear discrepancy between lender processing systems and customer needs. Consumers today desire quick outcomes, yet also expect personalized customer experience. Companies are searching for AI tools that allow them to increase customer satisfaction through digital retailing.

Furthermore, consumers were also asked what factors would make the buying process easier in the future. Over 62.2% said that quicker, more simplified processes were top of mind. Another 29.7% reported that in-real-time access to updates on the status of their loan would simplify the process, and 24.3% said that access to pre-qualification tools would improve their experience.

When consumers were asked about their level of understanding on the terms of their loan, only 34% reported they fully understood their loan. Sixty-six percent of consumers reported they either do not understand the terms of their loan at all, or somewhat understand but do not know every detail. This statistic should be concerning to lenders specifically as misunderstanding of loan terms can significantly affect loan default.

“The survey shows a clear divide between lender process system efficiency and customer needs that affect the overall customer experience,” said Bryan Smith, Head of Consumer Growth and Partnerships at Inovatec. “Lenders need access to updated systems that integrate artificial intelligence to improve their processes, which has a trickle-down effect to customers over time.” 

About Inovatec Systems Corp.

Inovatec Systems Corporation is an industry-leading provider of cloud-based software solutions for automotive and equipment financing institutions. The seamless platform is ideal for external partner and customer communications through a robust ecosystem that streamlines the process of crediting, auditing, funding and income verification for finance applications. For more information, please visit https://www.inovatec.com/.

Views: 9

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Latest Activity

Maria Watson posted a blog post

Ship your logistics internationally with the most trusted agency

Transportation of goods between countries takes place for many reasons. The majority, however, is…See More
5 minutes ago
John Sternal posted a blog post

Beep Appoints Clayton Tino as Chief Technology Officer

Extensive Experience in Engineering, Platform Design and Software Developmentto Innovate and Scale…See More
3 hours ago
Dave Anderson posted a blog post

Do Moore, Be Moore, 4 Moore

I've never done a podcast episode quite like this one. In it I share a touching, real life story of…See More
22 hours ago
Michael Trasatti posted a blog post
yesterday
Dane Saville posted a blog post

Stimulate More Interest in Your New and Used Cars | KPI Cafe Season 3 Bonus 2

Host Dane Saville dives into the details for creating diverse new and used car campaigns for your…See More
Monday
Bill Wittenmyer posted a video

#WittsWiseWords - Don't Be a Seatbelt Manager

Instead of staying tethered to your cushy swivel chair, Bill Wittenmyer encourages managers to make it a point to wander a bit throughout the day to spot iss...
Monday
Michael Trasatti posted a video

Why Do Video Blogs?

Mike Trasatti shares why video blogs are an important asset.
Monday
Dane Saville posted a blog post

How Your Dealership Can Have Social Media Mania, Brother! | KPI Cafe Season 3 Episode 3

Host Dane Saville conjures up the power of Hulkamania to talk about a remarkable paid social media…See More
Friday
Scot Eisenfelder posted a video

CarMax is winning by Playing Moneyball

Scot Eisenfelder explains how CarMax enjoys tremendous market value by levering its data in every single operation.
Friday
Jim Flint posted a blog post
Friday
Mike theCarGuy Correra posted a video

Can New Technology Make A Dealership Less Efficient?

Mike Correra shares how dealerships can adopt new technology more efficiently.
Friday
Richard Keeney posted a blog post
Thursday
Damian Boudreaux posted blog posts
Thursday
Lehel Reeves posted a video

3 Types of Video that Lead to Increased Lead Conversion

Lehel Reeves shares three types of video responses to send to your customers that can increase show rate and lead conversions.
Dec 4
Rob Gehring posted a blog post
Dec 4
Bill Wittenmyer posted a video

#WittsWiseWords: You Can Still Be The "Go-To Person" for Digital Retail

Digital retail opens new possibilities and responsibilities for engaging with today's connected car shopper. As Bill Wittenmyer explains, being the "Go-To" p...
Dec 4
Adam Swanson posted a blog post
Dec 3
Scot Eisenfelder posted a blog post

Auto Groups Overlook $230K Per Store in Used-Car Service Opportunities [PRESS RELEASE]

Study reveals that auto groups could significantly increase customer pay revenue by marketing to…See More
Dec 3
Reynalda Lor posted a discussion

Need Suggestion About Tesla 3 Floor Mats

Greetings!We recently got a bunch of Tesla Model 3 vehicles via a private dealing with the sellers…See More
Dec 2

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service