REVVING UP EFFICIENCY:
UNLOCKING OPERATIONAL SUCCESS FOR CAR FINANCE INTERMEDIARIES

MARSH FINANCE

The UK car finance industry faces several challenges impacting business performance and profitability. One of the biggest challenges is the increasing competition within the market. With a rising number of companies entering the market, it is becoming increasingly difficult for car finance intermediaries to stand out and attract customers.

Another challenge is the rising cost of borrowing. Interest rates have steadily increased over the past few years, making it more expensive for consumers to finance car purchases. This is particularly difficult for those with lower credit scores, who may be charged higher interest rates.

Within the industry, there are also issues with flawed processes and sales efficiencies. Many companies still use outdated methods and systems, which can be slow and cumbersome.

Sales efficiencies are also an issue, as many companies need help to target, reach, and convert their potential customers effectively. On average, car finance companies typically have a conversion rate of around 5% to 15% on loan applications.

Car finance companies must invest in modern, efficient processes and systems to address challenges. This includes adopting new technologies such as artificial intelligence and automation, which can help streamline operations and improve efficiency.

HOW TO IMPROVE EFFICIENCIES WITHIN YOUR BUSINESS
• Automation: Automating manual tasks can help reduce errors and improve efficiency. For example, car finance companies can use automation tools to streamline the application process, handle customer queries, and manage loan payments.

• Digitalisation: Adopting digital technologies can help car finance intermediaries reduce paper usage, speed up processes, and improve customer experience. For example, they can use online platforms to allow customers to apply for loans, make payments, and track their loan status.

• Data analytics: Using data analytics, car finance intermediaries can gain insights into customer behaviour and preferences, which can help them tailor their products and services to meet customer needs better. This can help improve customer retention and increase conversions.

• Collaboration: Collaborating with partners such as car dealerships, lenders, and banks can help car finance intermediaries access a wider pool of products and expand their reach. This can also help them offer a broader range of products and services, improving customer satisfaction.

THE BENEFITS OF IMPLEMENTING THESE STRATEGIES
• Automation: Intermediaries can save time and reduce costs by reducing the need for manual labour.

• Digitalisation: Digitalisation can help intermediaries reach more customers, offer more products, and improve efficiency.

• Data analytics: Data analytics can help car finance intermediaries make informed decisions based on real-time data, leading to improved efficiency and better customer targeting.

• Collaboration: Collaboration can help car finance intermediaries expand their reach and access a wider pool of customers whilst offering a broader range of products and services, increasing customer satisfaction.