More than one-third of all motor finance agreements executed in the UK now pass through the Dealflo financial services automation platform, the company has revealed.
The platform allows motor finance companies to digitise their end-to-end customer agreement process, including the use of e-signature technology.It also collects evidence at each stage of the transaction to prove that agreements have been executed to fully compliant standards.
Among its recent customers is Santander Consumer, which signed up to the system to underpin its motor finance operations.
According to Abe Smith, CEO and founder at Dealflo, the growing demand recognises the need for lenders to provide an evidence-based, compliant customer experience during the financial agreement process to meet the Financial Conduct Authority’s goal of ensuring ‘good customer outcomes’.
He said: “FCA scrutiny of motor finance continues to see lenders looking for technology that they can rely upon to demonstrate the highest level of process control.
“Our approach embraces all the components necessary to fully automate financial agreements through a single highly-compliant and digital platform.
“This both improves the experience for the customer and reduces risk for the lender.”
He said that, increasingly, regulators will be looking to lenders to prove that compliant processes have been followed, so it is imperative to collect reliable and quality evidence to create a robust audit trail.
The FCA painted a positive picture of lending practices in a recent update on its review of standards in the motor finance industry.
However, it said it would have three main areas of focus for the remainder of its investigation:
- Whether firms are properly assessing whether customers can afford to buy the car they are being offered – particularly for people with lower credit scores
- How firms are managing the risks around commission arrangements for dealers
- Whether consumers’ engagement with firms, and the information they are given, allows them to make informed decisions
Smith said that the future for auto finance is positive in an increasingly regulated environment.
He added: “I see compliance as a good thing for auto finance, helping to develop and sustain customer confidence in the experience. Into this, technology can play a positive part; reducing risk, enhancing transparency and improving customer engagement.”