INSIGHTS FROM THE 2023 AUTO FINANCE SUMMIT
Tight inventory, rising rates and affordability are key concerns. But the industry is poised for growth when it comes to process automation and EV financing.
The 2023 Auto Finance Summit brought together thought leaders and professionals from across the industry to discuss current trends and issues in auto financing. Concord was an exhibitor at this year’s event in Las Vegas, which offered a closer look at the latest technology, service providers and channel partners serving the industry.
Here are three key insights we walked away with from the event:
- Sales and demand continue to be affected by a tight inventory environment.
- Elevated interest rates and rising monthly payments are impacting affordability.
- Delinquencies are rising across prime and subprime segments.
Looking ahead, the industry appears to be poised for growth in two key areas: process automation using artificial intelligence (AI), and the adoption of new EV financing models.
AI tools
Financial institutions have been using AI for years. But during a panel discussion on AI, we learned that auto lenders are looking at new ways to use advanced AI capabilities to drive operations efficiency.
- Chase Auto is evaluating opportunities to use AI for coding, documentation and underwriting processes.
- AI can also help organizations embrace a paperless loan process to drive faster funding and execution.
EV financing options
The auto industry is a critical player in the decarbonization movement. During a panel discussion on EV financing, we learned about some key similarities between the residential solar and EV markets when it comes to infrastructure and funding.
- A combination of fintech, public and private capital will be critical for the success of large-scale EV adoption – just as it has been in the solar space.
- New financial structures can both promote EV adoption and help scale funding for clean energy vehicles.
Looking for a loan servicing partner?
Concord has the expertise to manage every aspect of your loan operations. As a leading loan servicer with more than 30 years of experience, we deliver compliant, flexible, and scalable solutions to meet your unique needs. Contact us today at (866) 493-6393 or bd@concordservicing.com.
