How Fintech Is Finally Disrupting Auto Finance

Sometimes you have to get a "maybe" before you can get a "yes." That's apropos of the long path to acceptance of new methods in well-established markets with well-worn channels and dominant players. Auto finance has presented such a challenge, but, finally, Fintech has made inroads. Below, we look at how Fintech is disrupting auto financing and refinancing and transforming the market in multiple areas, including access to credit, speed and efficiency of transactions, and transparency.

Creditworthiness Redefined

Underwriting is a key area that is receiving a makeover as Fintechs are using artificial intelligence (AI) and alternative data to qualify borrowers. By bringing in non-traditional payment data (such as bank account/cash flow, rental payment history, professional licensing or education information) to the underwriting decision, lenders are able to more accurately price risk and, in turn, borrowers can strike a better deal on the rate.