LAS VEGAS — Many auto lenders plan to increase their investment in direct lending and mobile applications in 2018, according to a poll conducted at the 2017 Auto Finance Summit.
Out of all attendee respondents, 35% said direct lending is where they will increase their digital technology investment/spending the most next year.
Bank of America Dealer Financial Services, for example, is considering partnerships with multi-lender fintech platforms to drive more volume, said David Hollodick, the bank’s product and pricing executive for consumer vehicle lending.
Earlier this year, Bank of America launched a direct lending platform that allows consumers to browse inventory and apply for financing before completing the purchase at a dealership within the bank’s network.
Other platforms, such as AutoFi, AutoGravity, and Ally Financial Inc.’s ClearLane, provide similar services but draw from multiple lender partners.
Closely trailing the direct lending percentage is mobile applications, in which 32% of respondents said they would increase their investments in this digital technology next year.
Additionally, 11% of respondents said they will increase their investment/spending in artificial intelligence, and 22% said e-contracting.
Meanwhile, 0% of respondents said car subscriptions and/or rideshare.