Auto lenders have dedicated many resources to compliance safeguards over the past several years. They will maintain the compliance strategies they’ve built, but under the Trump administration, some compliance resources could be redirected to technology advancements.
Regardless of a Democratic or Republican administration, auto lenders are committed to their compliance policies, Chris Stinebert, CEO of the American Financial Services Association, told Automotive News.
Still, lenders are trying to determine the impact of technology throughout the car buying, financing and ownership process and how it will affect their business, he said. Half of the companies accept technology and half see it as a threat.
“The traditional way of purchasing and financing a car has been the same method that we’ve used for the last 50 years,” he said. “We all see that evolving and changing over the next 5 to 10 years, and we’re all racing to see … how it can be used in good ways and in [which] areas we [should] be careful.”
One setback to some lenders’ electronic contracting growth, for example, has been a lack of resources. Lenders’ adoption of e-contracting, Reynolds and Reynolds’ Jon Strawsburg said, isn’t “a tech holdup at this point. I think it’s a matter of resources and competing with other projects lenders have on their boards.”
Much technology advancement, such as e-contracting, creates a more compliant, error-free financing process. Realigning some of the compliance resources to technology advancement will likely pay off industrywide.