New financing technologies are transforming the industry day by day, in the same manner auto finance executives also should have a greater breadth of economic, regulatory, and technology knowledge and experience to deal with the upcoming changes.
FREMONT, CA: Modern technologies are transforming the auto finance industry in a significant manner. As technologies keep on changing every year so the technologies that drove success five years ago don’t guarantee success today. In the same way, auto finance executives these days should have a greater breadth of economic, regulatory, and technology knowledge and experience than ever before.
Here are some of the characteristics essential for a successful auto finance executive:
1. Steeped in the industry
The person who grew up in the industry knows the industry as well. That means hands-on, evolving responsibilities over two or more decades, through multiple industry cycles and ever-growing regulations, contending with challenges, recovering from losses, and maximizing opportunities. The best execs demonstrate maturity in pragmatically anticipating and responding to industry dynamics.
2. Understands every step of the lending cycle
The best execs understand the need for relentless and continuous improvement at every step of the lending cycle. They know that efficiency is the product of many factors, and they focus on those that can be modified or adjusted to improve productivity and profit continually. Whether it’s the loan-submission process, underwriter competence, credit policies, regulatory impact, workflows, funding, servicing, collections, or recovery, astute executives know where and how cost-effective changes can be introduced.
3. Focused on the bottom line
Nowadays, the auto finance executives know that all the decisions, including tactical, strategies, technological, or police-related, have an inbuilt economic factor. Will those decisions improve the lender’s ability to successfully address current market needs and prepare for inevitable industry changes? How do you stack up compared to top auto execs? And how well are you positioned for the future?
4. Tech-savvy, with an appetite for innovation
Tech-savvy executives understand the economic and operational value of technologies and aggressively adopt them. They consider fintech innovations such as the cloud, machine learning for fraud detection and risk management, and automated calls to cloud-based services that offer a more detailed profile of applicants’ financial strength. It also provides in-depth insight into lending efficiency and portfolio profitability to improve decision quality, consistency, and speed.
See Also: Top Corporate Finance Technology Companies
