Self-service finance the future
Self-service motor finance – where the customer manages the entire choice and application process themselves online – is set to become widely used within the next couple of years, predicts iVendi.
With the technology now available, it will spread quickly because it meets the needs of customers, dealers, car portals, lenders and the Financial Conduct Authority (FCA), believes James Tew, iVendi CEO.
James said, ‘The old model, where the dealer controlled access to finance completely and the customer was placed in a very reactive position, is already starting to disappear quite quickly. The question is – what will it be replaced with?
‘With online tools available both in the dealership and remotely, the customer can drive a self-service process within parameters set by the dealer, car portal or lender, giving the consumer an extremely high level of control.
‘Not only does this allow the customer to look at a wide range of different finance products, terms, deposits and risk profiles at their own convenience, but it saves time and resources for the dealer, and allows them to offer a 24-7 finance service.’
James added that this approach was very much in tune with 21st century retail thinking, an area where the motor industry had been guilty of lagging behind.
‘At a time when Amazon and eBay were changing how people shopped, the motor industry was very much still in thrall to the idea of the dealership. Now, we are beginning to catch up and, with products such as self-serve motor finance, even exceed the online experience that customers receive in other sectors.’
A further advantage was that self-serve was in line with FCA thinking on how motor finance should be provided to customers, James said.