The Indian financial market has evolved in recent years. The effects of this change can be seen reflecting through the auto industry.
A growing number of consumers are enquiring about auto loans, lending rates and more.
They seek the best financing companies on the row that bring the best value through hard-to-miss deals. The growing competition has crowned customer king.
The only way financial companies can make a place for themselves is by differentiating themselves. Importantly, they are also embracing the growing trends within the auto market.
In 2020, here are some of the trends that are expected to cause an evolution in the car loan market:
Simple and streamlined online processing –Not long ago, the fair loan structures were expected to be delivered by auto lenders. The consumer could only go to a given number of lenders before finalizing the best deal.
However, today the times have changed. A consumer can look online and find loads of information on not just available car loans, but car loan interest rates as well.
This change will lead to lenders providing a more streamlined and reliable online process for offering loans in the current year. Additionally, one can expect automated loan structuring and quick answers to related queries.
Auto lending through AI and machine learning – To better structure loan and loan lending, the finance industry is expected to make use of Artificial Intelligence and machine learning.
While using these technologies was a farfetched idea long ago due to the IT complications, the use of cloud sourcing has made the process relatively easier.
There is a likely trend to be seen among lenders using this technology to identify several factors such as the borrower’s repayment capacity and assessing the lending risk.
Extending loan offers to the young and old – Typically, loan marketing tends to dwell on only the young.
Findings however point towards the fact that the older consumers are a good target group as well.
A trend may be observed in a way that attractive offers will be made to people above the age group of 40 years.
The above mentioned auto finance trends will play a major role in the growth of the industry. As the lenders continue to adapt and introduce new technologies with their existing systems, consumers can expect to make the best of it all.
