During the COVID-19 pandemic, work shutdowns, including DMV offices across the country, have aggravated lenders' typically tough job. As many businesses had to reinvent their processes in the digital space and shifted online, cyberattacks spiked during the pandemic, and many lenders found they and their suddenly remote employees had no special immunity. Even the FBI urged extra caution because of an increase in digital crimes during the pandemic.
How secure online business holds the key to an even stronger recovery
Auto lenders engage in a very necessary, expanding, and in-demand business. Before the pandemic, auto lending's $1.3 trillion in business represented the second-fastest growing of all asset classes. As the economy travels through the COVID-19 period and even its associated aftermath, growth may slow for some time, though likely not for long.
Even more, lenders must focus on new and more efficient ways of conducting business in order to cope with the realities of pandemic life and changing consumer behavior. For example:
- Many DMVs have changed priorities to cope with their limited resources during the pandemic, so they may not focus on processing titles first.
- Lenders saw some temporary drops in loan originations; however, they also face many complex problems of rising defaults. Meanwhile, lenders are finding ways to offer relief to struggling borrowers and refinancing to other customers who want to take advantage of competitive interest rates.
- The trend toward conducting more customer-facing and internal business digitally will only continue to grow, prompted by both the need for efficiency and changing consumer behavior.
Increasing digital transformation will deliver better access for consumers and more efficient processes for lenders. Not only will online systems help cope with such pandemic problems as social distancing and government authority slowdowns, but these systems can also streamline lending business to provide the efficiencies that can reduce errors, eliminate titling problems, save money, and reduce workloads in a way that will translate into higher profits and a better employee and customer experience.
Still, it's critical for auto lenders to work with digital partners who can provide all of these benefits in a digitally secure way. Otherwise, these important businesses will leave themselves vulnerable to the digital breaches and cyberattacks that have hurt the bottom lines and even reputations of other businesses during their own digital transformation.
Read an in-depth report about the importance of focusing on both digital transformation and digital security
This brief summary touched upon the importance of digitizing and the critical need to ensure lenders rely upon secure systems. To learn more about the importance of secure, online systems during the pandemic and beyond, read this free, in-depth report from two Wolters Kluwer Lien Solutions motor vehicle industry experts. Travis Ellis serves as the Lien Solutions Product Owner for motor vehicle, and Marina Hardy is the motor vehicle Product Marketing Associate Director.