Captive lenders are a growing financial force in the auto lending business. Information services firm Experian, which tracks auto sector loans, published data in 2015 showing that captive lenders were responsible for around 26% of auto loans while banks were only slightly ahead at 34%. Amid the increased growth, there is tremendous pressure in the industry both from competition and from increased regulatory oversight. Lenders who can manage risk effectively and stay compliant while seizing growth opportunities will create a competitive advantage.
Tech Mahindra’s Automotive Financial Services solution is built to help captive auto finance lenders address their evolving business needs through differentiated offerings catering to different sections of the captive portfolio. It features an automated loan origination system applicable across wholesale, floor plan and retail loan processes, offerings addressing the front end through back office needs of the entire lending/leasing process, a platform offering usage based insurance and residual value analysis, and advanced analytics through a pre-built customizable BI framework.
- Automated Loan Origination solution (LOS) built on SFDC platform for loan products such as Floor plan, Retail Loan etc with automated eligibility assessments and multi-channel support
- Product based, configurable solution for Leasing and Lending processes covering the entire breadth of the processes from the front office to the back
- Auto insurance with telematic Usage Based Insurance, an end to end platform including device selection/device management/cloud storage/SIM management
- Up to 40% reduction in operating cost through increased automation, error free data collection first time and every time, and increase in user productivity
- More than 20% to 50% decrease in claims expense over time
- Over 30% reduction in risk and complexity for telematics usage based insurance providers
- Lowered customer acquisition costs and improved renewal retention
- Enhanced user experience owing to multichannel capabilities and near real-time decision making capabilities of automated loan origination solution resulting in increase in customer renewal retention