By Carly Peroutka
A post-COVID-19 world highlights the importance of digital capabilities and products as well as the value of speed and integration. It’s no longer a question of “whether” consumers want digital tools. It’s now a question of “how” and “when” they want these tools delivered. Business leaders should prepare for more virtual exchanges and less in-person interactions. The auto industry is no exception.
So how can auto lenders meet consumer demands? It all comes down to one thing: fast access to the information and insights needed to improve applicant experience and make informed lending decisions.
Opportunity Amidst Crisis
COVID-19 isn’t the first crisis to impact the way we do business, and it certainly will not be the last. Our “new normal” is here and ever changing, and lenders have the opportunity to enhance processes that support rapidly changing consumer needs and expectations. These opportunities include the way lenders leverage technology partners to deliver a quick, secure and consistent lending process to applicants.
In today’s market, the most successful lenders are often those that are able to best meet consumer expectations of speed and convenience. And those lenders usually deliver on that expectation in a way that many times creates a positive, if not delightful, customer experience. A key component to success in this new borrower lender model hinges on the ability of the lender to effectively access consumer data from a secure, independent, third-party source. The Work Number’s extensive database of income and employment information can help lenders gain insights in real-time, enabling quicker, even same day, decisions regarding a loan application.
Here's how leveraging The Work Number verifications can help auto lenders make more informed decisions:
Access to more data: The Work Number database houses nearly 115 million active records from over one million employers. More records and data can translate into more instant verifications and improved business results.
Having access to the right type of data can bring a higher degree of certainty to the loan origination process. One Equifax customer found, over time, it can also help yield fewer defaults, improve efficiency and shorten decisioning processes. Increasingly, lenders are seeking information beyond just the traditional credit score when making lending decisions. They’ve found that additional data, such as employment and income information, is useful when considering a potential borrower’s ability to repay a loan. This added layer of data can help paint a more informed picture of the borrower. In fact, a recent analysis of consumer income data demonstrated the importance of understanding income trends. The analysis showed that even prime borrowers were significantly impacted by the economic fluctuations brought on by the pandemic.
Improved applicant experience: Historically, verifying employment and income required documents such as pay stubs, bank statements and other borrower-provided paperwork.
This placed a burden on the borrower and the lender. Now, savvy lenders choose to access
this information themselves. Either via direct access or by leveraging technology through third-party integrations, lender access to employment and income data benefits consumers by potentially reducing the amount of paper documentation required from them. It can benefit auto lenders by helping to reduce processing costs, boosting efficiency and freeing up internal
resources to focus on selling more cars.
Contact us today if you’d like help figuring out how your organization can leverage real-time income and employment data to grow your business. Visit our auto page for more information on how The Work Number can work for auto dealers and lenders.