Delegates at AM Live will learn how new finance technology can be used to help boost customer acceptance rates and increase Finance Conduct Authority (FCA) compliance at the same time.
This Operational Excellence session from Codeweavers is one of 12 presentations that will be available to delegates at the show, which returns to the NEC in Birmingham on November 11.
Andrew Gill, Codeweavers head of lender products and Mat Stonley, Experian business development director will offer tips on how to improve lender underwriting efficiencies and increase customer satisfaction with the right finance technology tools.
Codeweavers and Experian’s joint session will also reveal the results of a pilot the companies have been running with a select group of retailers that have seen them use a new finance eligibility tool that gives a clearer view of customers’ financing options without affecting their credit score.
New data and tangible results from the pilot will show what kind of impact this eligibility technology can have on the customer journey.
This new technology means dealers can now see what lending the customer would be preapproved for – or a percentage likelihood of them being accepted – along with the real rate that will be offered.
Gill said: “This pilot project has been really good in helping to streamline the finance application process for customers, retailers and lenders.
“It’s quite rare that you work on something that affects all three.”
Gill said Codeweavers’ pursued this new innovation with Experian due to the increased level of digitalisation in the sale process.
He said that while being able to complete more of the customer journey online is positive overall, it also means there are fewer chances for face to face guidance in the showroom.
Gill said: “Having the ability to assess eligibility ahead of any application can help customers match with the right finance, but it also means retailers are putting customers forward for finance they know they’re highly likely to be accepted on.”
Stonley said the added benefit of new eligibility solutions for the automotive sector helps with dealers that have moved to new finance commission models following the FCA’s ban on all discretionary commission (DiC) from January 28 this year.
Most lenders have switched to either a ‘rate for risk’ structure or a flat rate of commission for each deal.
Risk-based pricing is a method that lenders can use to determine interest rates for car finance based on the applicant’s creditworthiness and risk.
Stonley added: “Looking at eligibility for customers will give retailers more clarity around the lender and the rate they can expect to see for each customer.”
The session by Codeweavers, which was acquired this year by Cox Automotive, is just one of the 12 presentations across the packed schedule on the day across three theatre areas, including Operational Excellence, Digital and Inspiration.