WOLTERS KLUWER SECOND QUARTER AUTO FINANCE DIGITAL TRANSFORMATION INDEX SHOWS DIGITAL ADOPTION RATE UP SLIGHTLY

WOLTERS KLUWER SECOND QUARTER AUTO FINANCE DIGITAL TRANSFORMATION INDEX SHOWS DIGITAL ADOPTION RATE UP SLIGHTLY

 

Budgetary Pressures Setting In for Digital Adoption; Lenders Realizing Importance of Digitizing the Entire Transaction Process

 

NEW YORK – August 2, 2023 – Wolters Kluwer, a global leader in professional information, software solutions and services, announced second quarter results and analysis from its Auto Finance Digital Transformation Index, a key resource that tracks the rate at which auto dealers, service providers and lenders are seeing growth in the evolution from paper-based finance back-office processes to digital. Click here to see the complete data report.

 

According to the Federal Reserve System’s June edition of its Beige Book, auto loan demand has slowed recently amid high interest rates, while sales continued to be steady, if not slightly up on the year. Consumers appear to be selecting lower-priced vehicles as affordability continues to place pressure on loan demand. Despite the sluggish demand for loans, the auto industry continues to show a growing interest in digitizing loans and contracts for better back office-efficiencies.

 

Digital Adoption Up Slightly Mirroring First Half Sales Activity

According to the most recent Auto Finance Digital Transformation Index based on second quarter data, auto dealers, service providers and lenders showed a digital adoption growth rate of 7% in the second quarter compared with the first quarter. The growth rate of digital was up slightly in the first half of the year, mirroring the slight uptick in overall vehicle sales activity. However, historically after the first quarter spike the data historically show a new plateau of digital adoption, which appears to be the case again in 2023 and consistent with the previous four years.

 

In comparing year-over-year data for the second quarter, the volume of digital adoption was up slightly at 2% compared with a year ago. The trailing twelve-month rate increased 13%, a good sign of market stability and recovery despite the second quarter YOY slight uptick.

 

“We’re beginning to see budgetary pressures of continued sluggish auto sales impact the adoption rate of digitized back-office workflows for many lenders and dealers here in the mid-way point of 2023,” said Tim Yalich, Head of Auto Strategy for Wolters Kluwer. “Our customer feedback is telling us that the industry continues to see great value and need to digitize all aspects of the loan and contract phases for both originations and securitization, especially since there are greater efficiencies realized when digitization is experienced along the entire journey, not just up front for the consumer.”

 

 

 

 

 

 

Digital Adoption Mostly Flat For Securitization Markets

Wolters Kluwer’s Q2 Auto Finance Digital Transformation Index also shows that the digitization adoption rate for securitization markets has remained mostly flat, with the number of transactions nearly at and on par with the second quarter previous year levels and in line with expectations.  Overall, the number of transactions over the last three years are still trending slightly down and in line with market conditions.

 

To learn more and to access additional data insights from the Wolters Kluwer Auto Finance Digital Transformation Index, click here.

 

About Wolters Kluwer

 

Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the health, tax & accounting, governance, risk & compliance, and legal & regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

 

 

# # #

 

Views: 24

Comment

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

Join DealerELITE.net

© 2023   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service