inovatec, Author at Inovatec Systems
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Inovatec Systems announced that it has completed its SOC 1 Type II and SOC 2 Type II audits, performed by KirkpatrickPrice. These attestations provide evidence that Inovatec has a strong commitment to security and to delivering high-quality services to its clients by demonstrating that they have designed the necessary internal controls and processes.

A SOC 1 audit provides an independent, third-party validation that a service organization’s information security practices meet industry standards stipulated by the AICPA and SSAE 18. During the audit, a service organization’s controls that are relevant to ICFR are tested. The SOC 1 report delivered by KirkpatrickPrice verifies the suitability of the design of Inovatec’s controls to meet the standards for these criteria.

A SOC 2 audit provides an independent, third-party validation that a service organization’s information security practices meet industry standards stipulated by the AICPA. During the audit, a service organization’s non-financial reporting controls as they relate to security, availability, processing integrity, confidentiality, and privacy of a system are tested. The SOC 2 report delivered by KirkpatrickPrice verifies the suitability of the design of Inovatec’s controls to meet the standards for these criteria.

“Each year, Inovatec takes extensive measures to protect the integrity, quality, and confidentiality of our customers’ data,” said Christian Reina, Information Security Officer at Inovatec.  “We adhere to the highest industry standards, ensuring the security and privacy of information in every transaction.”

“Many of Inovatec’s clients rely on them to protect consumer information and provide secure services,” said Joseph Kirkpatrick, President of KirkpatrickPrice. “As a result, Inovatec has implemented best practice controls demanded by their clients to address information security and compliance risks. Our third-party opinion validates these controls and the tests we perform provide assurance to Inovatec’s clients.”

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Automatic Document Indexing Will Drastically Increase Transaction Accuracy and Speed for Financial Institutions

JAVELIN platform now offers OCR (Optical Character Recognition) for automatic document indexing and sorting. The OCR technology uses custom-built AI machine-learning to allow financial institutions and lenders to sort incoming documents at any hour. The OCR function will save approximately three to five minutes of manual sort time per transaction with accuracy while maintaining current funding processes. For lenders processing thousands of loans at any given time, the OCR feature saves significantly on valuable working hours.

The feature encompasses three different phases:

Automatic Document Indexing includes automatic document indexing and sorting through custom-built artificial intelligence (AI) machine learning. The automatic document indexing feature allows sorting of incoming documents 24/7 while maintaining speedy and accuracy.

Meta Data Validation takes the next step in validating crucial data for funding. This data validation allows financial institutions to “automatically fund” using data analytics. By isolating the necessary data elements for funding, a transaction can automatically be completed using validations that align with lenders current processes.

Auto Fund is the process that completes the journey to Automated Funding by taking a submission or automatic approval to funding without human touch.  Inovatec is the first and only technology provider to offer Automatic Funding as part of their LOS offering.

Benefits of an OCR-capable system:

  • Decreased Funding turnaround time and head count required for Indexing and Data Validation.  Use those FTE to fund or adjudicate more deals.
  • Increased efficiencies through automated solutions. Get a completely paperless environment through Digital Document from any source (fax, text, email). 100% accurate validations.
  • Increased customer satisfaction through faster automated status communications to and from the originating portal. Expose missing or incorrect data and documents.

“Providing the most accurate data for our customers while helping them to save in a quantifiable and scalable way always been a fundamental value at Inovatec,” said Brendon Aleski, US Director of Sales at Inovatec. “We are constantly improving and perfecting our product offering to include proprietary modules, analytics and cutting-edge machine learning capabilities that become smarter with each transaction.” JAVELIN by Inovatec is a state-of-the-art lending platform that helps lenders select the right deals, while only paying for deals that are booked. Inovatec’s solutions improve overall efficiency in areas that would take lenders hundreds of working hours to process, file, organize and approve applications.

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Byline: VLAD KOVACEVIC

Post Summary:

  • The Serious Buying Power Of Generation Z
  • Gen Z Car Skeptics Are Coming Around
  • Selling To A Digital First Generation
  • #Activism: Voting With Their Wallets
  • Contradictions We Love

Born after 1996, Generation Z is entering the workforce in the tens of millions. In fact, Gen Z will be the largest generation in U.S. history, influencing between $600 billion and $3 trillion in consumer spending. However, their car-buying habits are quite different to previous generations – including the Millenials. 

Generation Z is pragmatic and frugal. Is it any wonder? Gen Z faces unprecedented climate change, political upheaval, ballooning student debt and an unpredictable economy. They have a lot on their mind. 

Traditionally, vehicle ownership has not been a priority for Gen Z. Growing up with Uber and Lyft has meant that many Gen Z’s have put off getting their driver’s license. It’s not surprising. Buying a car was recently described by Forbes Magazine as a “painful experience”. Factor in the cost of insurance, clogged highways and 24/7 traffic jams in most big cities, no wonder Gen Z prefers car sharing to car buying.

But that may be changing. 

The pandemic, the exodus from the big cities and the rise of work from home has many wondering if Generation Z is finally getting ready to buy into car ownership. There is a sense that the COVID threat has made car sharing and public transport a risk too far for many. On the other hand, a year of staying home has fattened bank accounts for some and created a pent up demand for the freedom of the open road. 

In fact, as auto demand has exceeded supply this year, average new loan amounts have risen to levels not seen in several years. To everyone’s surprise, Gen Z slightly edges out Millennials in the largest increase in average loan amounts.

The auto-industry is waking up to a new car friendly Generation Z. However, if they wish to succeed with this unique cohort, traditional sales and marketing approaches won’t work. 

Selling To A Digital First Generation.

This is a digital first generation. Gen Z doesn’t remember a time before social media. They grew up with the internet and widespread connectivity across multiple devices, which puts pressure on dealers and lenders to adapt. 

Gen Z knows how to find a good deal online. Being web savvy isn’t just good for posting videos to Tik-Tok. They will scour the web for special offers, knowing they can always find a better deal. Which is why one of the most critical items for dealers when working with Gen Z buyers is providing a seamless online-to-showroom buying experience.

And yet FunnelAI  – a company that utilizes a variety of social platforms to understand buying intent – reviewed three years of data to find that auto dealers in particular miss roughly 78% of social conversations about their business. 

Anthony Mitchel, a Professional Services Consultant at DealerSocket recently shared his insight into Gen Z buying habits with Automotive News: “Gen Z wants to research and compare vehicles on fast and intuitive websites, where they have an up-to-the-minute listing of a dealer’s inventory, with discounts and other pertinent information easily available,” he explains, “Gen Z customers want to shop for a vehicle the same way they shop on sites like Amazon”.

But a fast and intuitive online experience is only one part of the buying decision for a Gen Z consumer. When it comes to auto financing, the online experience must also be seamless and stress-free. Gen Z wants to be in charge of structuring the deal. Being transparent about the different options available is key to winning their trust – and their business. Just like most customers, the more comfortable they are, the more money they will spend.

#Activism: Voting With Their Wallets

Gen Z is the “woke” generation. Gen Z looks at the company, not just the products they sell. While the older generation may roll their eyes at their hashtag activism, Generation Z wields outsized power because they vote with their wallets. This creates an opportunity for dealers and lenders to display genuine engagement within the local community or involvement in social causes to differentiate themselves with Gen Z buyers.

Like any generation, Gen Z are full of contradictions. They are famous for rejecting SUV’s due to their perceived impact on the environment, and yet Gen Z is passionate about classic cars. According to Driver Magazine, 22% of Gen Z drivers own a gas guzzling collectible car – and a full 53 per cent of them want to. Classic cars? That, at least, is something we can all agree on. 

Welcome to the open road Gen Z! We’ve been waiting for you.

VLAD KOVACEVIC is the Founder and CTO of Inovatec Systems. JAVELIN by Inovatec is a state-of-the-art lending platform that provides lenders with workflows that easily adapt to a new generation of car buyers. Find out about Inovatec’s performance pricing model, a breakthrough for the industry.

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Post summary:

  • Is Bigger Really Better In Choosing An LOS/LMS?
  • What is Success Based Pricing & Why Is It Important Now?
  • Why Integration Is The Game Changer For New Markets
  • How OCR & Automation Drives Efficiency By 300%

Defi, FIS, MeridianLink+TCI. No doubt about it, these are the elephants in the room. The larger, slow moving organizations in the SAAS automotive and asset based lending space.

Once upon a time, some of them were agile upstarts with new ideas but one by one they’ve been consumed by larger organizations and their customers are left wondering… what happened? What happened to the innovation? What happened to customer service? What happened to the fast turnaround?

Elephants haven’t evolved for about 50 million years. And now, the market is evolving three times as fast as their platforms – they just can’t keep pace.

With the move to digital first – especially since COVID-19 – Lenders are looking for partners – not just vendors. They want partners who are forward thinking and agile enough to stay ahead of the market. They want responsive, streamlined tech providers who are focused on delivering value not just now, but well into the future.

This is why Inovatec Solutions is attracting attention. Inovatec has been around for over a decade and their lending platform JAVELIN has already established itself with leading lenders in Canada and the USA.

Inovatec is in-step with what is important to Lenders today – and tomorrow. For example, Inovatec was built to safeguard against book-to-look erosion which Lenders have suffered for many years, but particularly through the pandemic. Inovatec built its entire LOS model from the ground up around charging only for transactions booked. They only charge fees when everyone’s economic interests are aligned: the consumer, the dealer and the successful lender.

Do any of the other traditional lending platforms offer this kind of success pricing? No, they don’t. They are happy with the status quo where Lenders pay for every application, whether it results in a deal or not. 

The evidence is clear; the traditional players are fixated on pleasing their shareholders first. By comparison, Inovatec is successful only when Lenders book transactions, which makes Inovatec a partner, not just a vendor. 

The elephants are just too big and too focused on their own bottom line. Which is puzzling, with ears that big, you’d have thought they’d be listening more to their customers’ concerns.

How Do The Big Lending Platforms Stack Up To Inovatec Javelin?
Inovatec Competitive Matrix

Elephant jokes aside, take a look at a feature by feature comparison with the traditional lending platforms below, you’ll see that when it comes to features that really matter to Lenders now, Inovatec JAVELIN deserves your serious attention.

Success Based Pricing

With Inovatec JAVELIN you pay only for the transactions you book. With the traditional LOS platforms you’ll still pay for every credit lead, whether you close or not.

Highly Configurable

Inovatec JAVELIN makes it easy to customize workflows to align with how your team is working today – wherever they are. You can easily update current products or develop new ones to compete in today’s changing market. JAVELIN grows with you.

Seamless Integration

Inovatec JAVELIN was designed to offer unmatched configurability and business process automation. The modular design integrates seamlessly with existing systems through our Open API infrastructure, harmonizing partners, vendors, dealers, internal staff and management.

Again, companies like Defi and TCI fall down on this one. They just aren’t as nimble, innovative and customer focused as Inovatec JAVELIN.

OCR & Automation

Javelin’s has built in optical character recognition and advanced process automation. Across your whole business, Javelin has been shown to increase efficiencies by 300% or more. Imagine what that can do to your bottom line.

Traditional platforms just don’t offer advanced automation technology like OCR. But no doubt they’ll get to it… in the next couple of years.

Streamlined Interface

We know how frustrating and time consuming it can be to have to click through endless screens to access relevant data. That’s why Inovatec designed JAVELIN to give Lenders the ability to quickly and easily decision a deal, often with just a few clicks.

Some of these platforms are famous for how many screens it takes to get anything done. #carpaltunnel

====

Trusted by North America’s largest lenders, Inovatec offers an integrated lending platform, including a LOS, LMS and Portal. But if you are looking for a single product, JAVELIN integrates beautifully with your existing tech stack.

Go ahead, and do your research. Put JAVELIN up against any of the traditional platforms, we are confident we will meet the needs of your business today – and tomorrow.

If you’re ready to update your system, we’d love to show you why JAVELIN is an industry leader – and the trusted choice for forward thinking lenders.

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How to replace face-to-face customer relationships with a satisfying digital first experience.

Post summary:

  • How COVID has accelerated the shift to digital first
  • How Consumers are driving change in auto sector
  • Understanding the Buyer’s journey
  • How successful Dealerships can 3X online sales 
  • Partnerships and technology

The Shift to Digital First Auto Sales

According to a Cox Automotive study, two out of three shoppers will likely purchase their next automobile 100% online.  In 2020, COVID-19 has accelerated the shift to digital. 

Recently Dealertrack reported “Over the past few months, digital solutions have quickly shifted from “nice to have” to “essential” for dealerships. In fact, according to Dealertrack sales and transaction data, between mid-April and mid-July 2020, interest in eContracting grew 94% while the number of contracts signed remotely rose by 97%”.

That’s a massive shift!

Truth is, consumers are driving change across all fronts in the auto industry – from driverless cars to direct to consumer auto sales. Along with almost every other industry, automotive has had to figure out how to replace face-to-face customer relationships with a satisfying digital first experience. To stay relevant with consumers, Dealers have had to adapt fast – with mixed results.

So what does that look like? What should Dealers be paying attention to when crafting a digital first customer experience? 

Crafting a Successful Customer Journey Online 

The first and most important concept to grasp is the digital-first experience is a customer-first experience. While it may be awkward to stand up and walk out of a dealership, it’s very easy to click off a web page. And that is exactly what a customer will do if the online experience is annoying, repetitive or frustrating. 

Every step in the Buyer’s Journey has to be understood through the lens of the customer experience. And not all customers are alike, so having a clear understanding of your target market is a critical first step in a successful digital first strategy. 

Let’s talk about websites: It’s time to stop thinking about your website as a storefront. Think of it more as a funnel where you engage your customer at the top,  give them all the information they need to make a decision and then provide them with the tools they require to make the purchase on their own terms. 

Remember, it’s very easy to lose a customer when all they have to do click off your page! So always give your customer the opportunity to engage with you on their own terms, whether by telephone, SMS text or better yet, on-site chat.


The Role Of Auto Financing In Increasing Online Sales

When it comes to auto financing, the online experience must also be seamless and stress-free. The customer has to be in charge of structuring the deal. You’ll need to be transparent about the different options available and make it easy for them to purchase additional products or aftermarket services like warranties etc.

The evidence is clear: when consumers make their purchase from the comfort of their own living room, they tend to spend more on their vehicle.  The more comfortable the customer is, the more money they will spend. 

Once a customer is ready to sign, they should be able to do that with an e-signature. So too with fulfilment. Make it easy for the customer to upload the required documentation to take possession of the car. 

Finally, the delivery of the vehicle is another area where a dealership can really shine and make it a celebration for the customer.

For after sale service, customer retention campaigns keep the customer engaged going forward: for lease renewal, for servicing and for when it comes time to buy a new car.


The great news for dealerships is that studies have shown that closing ratios double and triple if the customer journey minimizes friction. In other words, if you get the online experience right. You can only do that with an open mindset, the right technology, the right automation – and when necessary, human connection at exactly the right time.

Delivering The Experience: Partnerships & Technology

In order to succeed today, dealerships need to partner with a wide array of forward thinking Lenders who incorporate digital-first financing processes into their online shopping experience.  The key to the future is in making savvy technology investments and adapting new processes to bring lending companies and dealerships together, increasing the number of deals you close.

If your Dealership has an in-house financing arm, talk to us about Javelin, our end-to-end lending platform. We’ve designed it from the ground up to offer the kind of flexibility you need to benefit from direct to consumer auto lending.

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Post summary:

  • Why Bigger Is Not Better In Choosing An LOS/LMS
  • Why Success Based Pricing Is So Important Now
  • Why Integration Is The Game Changer For New Markets
  • How OCR & Automation Drives Efficiency By 300%

TCI provides digital lending platforms and digital banking technology. There is no doubt about it, they are a familiar name and one of the larger, more traditional vendors in the space. However, as Silicon Valley has taught us, bigger isn’t always better when it comes to technology companies.

With the marketplace evolving so rapidly – especially since COVID-19 – many Lenders are looking to partner with more responsive, streamlined tech providers. What’s important now are partners who are agile enough to stay ahead of the market and who are customer-focused enough to answer the phone in person.

Such a company is Inovatec Solutions. Inovatec has been around for over a decade and their lending platform JAVELIN has already established itself with forward thinking lenders in Canada and the USA.

Forward thinking? Yes! For example, Inovatec anticipated the kind of book-to-look erosion that many Lenders are experiencing today. Which is why they pioneered “Success Based” pricing. Lenders only pay for transactions they book.

Do any of the other lending platforms offer this kind of performance pricing? No they don’t. Their platforms are out of step with what is important to Lenders today, just take a look at the competitive matrix below.

Ultimately, we’re obsessed with your success because we’re successful only when you book transactions, which makes us more of a partner than just a vendor. Partnership is what is important to Lender’s today.

Let’s Compare TCI to Inovatec JAVELIN.

Take a look at a feature by feature comparison with many of North America’s leading lending platforms below, you’ll see that when it comes to features that really matter in the emerging digital first economy, Inovatec JAVELIN deserves your serious attention.

Inovatec Competitive Matrix

Let’s take look at some of these features as compared to TCI in more detail:

Success Based Pricing

With Inovatec JAVELIN you pay only for the transactions you book. TCI? Nope. You’ll still pay for every lead, whether you close or not. TCI gets paid no matter what deals they serve up, so how incentivized are they to make sure you book deals? They’re not.

Highly Configurable

Inovatec JAVELIN makes it easy to customize workflows to align with how your team is working today – wherever they are. You can easily update current products or develop new ones to compete in today’s changing market. JAVELIN grows with you.

TCI? Not so much. You’ll be trying to get them on the phone everytime you want to expand your offering.

Seamless Integration

Inovatec JAVELIN was designed to offer unmatched configurability and business process automation. The modular design integrates seamlessly with your existing systems through our Open API infrastructure, harmonizing partners, vendors, dealers, internal staff and management.

TCI? Sorry… you’ll be back on hold before you know it. Those traditional platforms just aren’t as flexible and user friendly as Inovatec JAVELIN.

OCR & Automation

Javelin’s has built in optical character recognition and advanced process automation. Across your whole business, Javelin has been shown to increase efficiencies by 300% or more. Imagine what that can do to your bottom line.

TCI talks a big game on their website, but they’re very thin on specifics. And they just don’t offer the kind of advanced automation technology like OCR.

Streamlined Interface

We know how frustrating – and time consuming – it can be to have to click through endless screens to access relevant data. That’s why we designed Inovatec JAVELIN to give you the ability to quickly and easily decision a deal, often with just a few clicks.

TCI is famous for how many screens it takes to get anything done. #carpaltunnel

====

Trusted by North America’s largest lenders, Inovatec offers an integrated lending platform, including a LOS, LMS and Portal. But if you are looking for a single product, JAVELIN integrates beautifully with your existing tech stack.

Go ahead, and do your research. Put JAVELIN up against any of the old school lending platforms, we are confident we will meet the needs of your business today – and tomorrow.

If you’re ready to update your system, we’d love to show you why JAVELIN is an industry leader – and the trusted choice for forward thinking lenders.

Related Articles

« | »

Post summary:

  • Why Bigger Is Not Better In Choosing An LOS/LMS
  • Why Success Based Pricing Is So Important Now
  • Why Integration Is The Game Changer For New Markets
  • How OCR & Automation Drives Efficiency By 300%

Defi provides digital lending platforms and digital banking technology. There is no doubt about it, they are a familiar name and one of the larger, more traditional vendors in the space. However, as Silicon Valley has taught us, bigger isn’t always better when it comes to technology companies.

With the marketplace evolving so rapidly – especially since COVID-19 – many Lenders are looking to partner with more responsive, streamlined tech providers. What’s important now are partners who are agile enough to stay ahead of the market and who are customer-focused enough to answer the phone in person.

Such a company is Inovatec Solutions. Inovatec has been around for over a decade and their lending platform JAVELIN has already established itself with forward thinking lenders in Canada and the USA.

Forward thinking? Yes! For example, Inovatec anticipated the kind of book-to-look erosion that many Lenders are experiencing today. Which is why they pioneered “Success Based” pricing. Lenders only pay for transactions they book.

Do any of the other lending platforms offer this kind of performance pricing? No they don’t. Their platforms are out of step with what is important to Lenders today, just take a look at the competitive matrix below.

Ultimately, we’re obsessed with your success because we’re successful only when you book transactions, which makes us more of a partner than just a vendor. Partnership is what is important to Lender’s today.

Let’s Compare Defi to Inovatec JAVELIN.

Take a look at a feature by feature comparison with many of North America’s leading lending platforms below, you’ll see that when it comes to features that really matter in the emerging digital first economy, Inovatec JAVELIN deserves your serious attention.

Inovatec Competitive Matrix

Let’s take look at some of these features as compared to Defi in more detail:

Success Based Pricing

With Inovatec JAVELIN you pay only for the transactions you book. Defi? Nope. You’ll still pay for every lead, whether you close or not. Defi gets paid no matter what deals they serve up, so how incentivized are they to make sure you book deals? They’re not.

Highly Configurable

Inovatec JAVELIN makes it easy to customize workflows to align with how your team is working today – wherever they are. You can easily update current products or develop new ones to compete in today’s changing market. JAVELIN grows with you.

Defi? Not so much. You’ll be trying to get them on the phone everytime you want to expand your offering.

Seamless Integration

Inovatec JAVELIN was designed to offer unmatched configurability and business process automation. The modular design integrates seamlessly with your existing systems through our Open API infrastructure, harmonizing partners, vendors, dealers, internal staff and management.

Defi? Sorry… you’ll be back on hold before you know it. Those traditional platforms just aren’t as flexible and user friendly as Inovatec JAVELIN.

OCR & Automation

Javelin’s has built in optical character recognition and advanced process automation. Across your whole business, Javelin has been shown to increase efficiencies by 300% or more. Imagine what that can do to your bottom line.

Defi talks a big game on their website, but they’re very thin on specifics. And they just don’t offer the kind of advanced automation technology like OCR.

Streamlined Interface

We know how frustrating – and time consuming – it can be to have to click through endless screens to access relevant data. That’s why we designed Inovatec JAVELIN to give you the ability to quickly and easily decision a deal, often with just a few clicks.

Defi is famous for how many screens it takes to get anything done. #carpaltunnel

====

Trusted by North America’s largest lenders, Inovatec offers an integrated lending platform, including a LOS, LMS and Portal. But if you are looking for a single product, JAVELIN integrates beautifully with your existing tech stack.

Go ahead, and do your research. Put JAVELIN up against any of the old school lending platforms, we are confident we will meet the needs of your business today – and tomorrow.

If you’re ready to update your system, we’d love to show you why JAVELIN is an industry leader – and the trusted choice for forward thinking lenders.

Related Articles

« | »

Our Compass Lending Platform has been rebranded under the JAVELIN name. The former Inovatec software products have been renamed under the JAVELIN moniker. The Compass Direct Portal is now known as JAVELIN Direct; Compass Asset Finance is now JAVELIN LOS; and Compass Loan Management is now JAVELIN LMS.

The rebranded name, JAVELIN, was selected to help simplify and streamline the Inovatec brand. The word “Javelin” is synonymous with speed, streamlined precision and targeted accuracy. These qualities make “Javelin” an ideal brand name for Inovatec’s proprietary technology.

JAVELIN by Inovatec is a state-of-the-art lending platform that helps lenders select the right deals, while only paying for deals that are booked. The JAVELIN platform encompasses three different aspects of technology:

  • JAVELIN Direct streamlines loan applications to lenders, making the job of completing and submitting credit applications fast and easy. With JAVELIN Direct, vendors and lenders can communicate in real time from the point of an application’s submission, all the way to booking the transaction. Real-time application updates and open communication across multiple channels guarantees lenders always have the information they need to book the right deal. JAVELIN Direct Portal works both as a stand-alone module and as part of Inovatec’s complete lending platform.
  • JAVELIN LOS is a loan origination system designed from the ground up to target the right deals. With Javelin Success Pricing, clients pay only for booked transactions. In addition to best-in-class crediting, auditing and income verification for financing applications, JAVELIN LOS supports self-configurable credit decisioning, tolerance limits and risk parameters with full auto decisioning and scorecard capabilities. JAVELIN’s open API infrastructure eliminates barriers and expedites connectivity with internal and external data and service providers to drive efficiencies and optimize lender partnerships.
  • JAVELIN LMS features electronic document management with robust loan servicing and after-care for loans, leasing, consumer/commercial customer service and collections and third party vendor management. JAVELIN Loan Servicing is a fully secure loan and lease servicing system. Lenders can easily manage customer loans leases, repayments, and collections all in one place – and improve outcomes every step of the way. Lenders can also manage loan fees, grace periods and penalties while maximizing flexibility with restructuring and refinancing options.

Inovatec’s solutions improve overall efficiency in areas that would take lenders hundreds of working hours to process, file, organize and approve applications.  JAVELIN has flexibility built in, so clients can quickly and easily update current products or develop new ones to keep their lending business in step with evolving markets. The technology quickly and easily adapts to existing loan products, creating a highly customizable user experience that aligns with current workflows and business goals.

“The rebranding of our Direct, LOS and LMS system was a pivotal decision for Inovatec, highlighting our strengths as a company,” said Brendon Aleski, US Director of Sales at Inovatec. “The COVID-19 pandemic has drastically disrupted the way that lenders operate, exposing a need for more effective technology processes that enable quick decisions and reactions to the changing market. Lenders who partner with organizations like Inovatec can pivot their strategies almost immediately, ensuring stability, consistency and accuracy throughout their business operations.” 

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The COVID-19 pandemic has caused dramatic shifts in the way many equipment finance companies do business, making digital strategy more important than ever. Vladimir Kovacevic discusses how to identify your company’s areas of need, merge antiquated systems, strengthen digital solutions and plan for recovery.

The COVID-19 pandemic has forced many lenders in the equipment finance industry to pivot their strategies to the online or digital environment. This may include payment modifications, self-service capabilities and increased bandwidth for online transactions. The equipment finance industry has been traditionally slow to embrace new technologies, relying on legacy philosophies and outdated systems. For many, COVID-19 has exposed critical technological gaps in lender business tools, systems and processes. Lenders that remain ahead of the curve are utilizing digital transformation to enhance their overall performance to streamline their processes.

The key to consistent growth and stability of any powerful company or organization is a strong foundation. This remains true for equipment finance lenders. In theory, lenders should have the capability to build from their existing processes, procedures and platforms. However, not all of them do. Advanced technology will allow for more sophisticated additions to be built from simple foundations.

Identifying Areas of Need

Lenders are affected differently depending on their market segment and their loan origination process. Considering the recent shift in business spending habits, now would be an ideal time for lenders to reevaluate their lending strategy. When the market is down, lenders experience even more competition and uncertainty. To remain competitive themselves, lenders need to connect with potential buyers across all shopping channels, including online, mobile and equipment manufacturers. Making quick lending decisions can be the difference between a borrower choosing one lender over another.

Engaging your borrowers at different levels through the various channels that they utilize most should be a top priority. For example, shoppers today spend much of their time utilizing mobile and online channels to shop various equipment manufacturers and options. They will research through non-traditional methods, and many will look to secure financing online — a process that will continue as we all practice social distancing.

Merging Antiquated Systems

Today’s loan origination platforms and solutions can support all market channels to access borrowers from businesses of all sizes. They also can be integrated with manufacturer software so borrowers can initiate loan applications at any time from the convenience of their mobile phones, opening new lending opportunities that may otherwise be missed. What’s more, built-in AI technology also will help ensure lenders are offering the right terms for each individual customer or business.

In the wake of COVID-19, lenders should expect that transactions will be moved to the online marketplace not only in the near term, but in the post-pandemic future. The transactions will not simply be handled the way they were in years past, when a lender requested information such as business financials from a customer. Instead, the entire process from application to delivery of equipment will be handled online. Lenders utilizing technology to approach the market in a more direct way will have a competitive edge and be ready to take advantage of new business buying patterns and behaviors.

Strengthening Digital Solutions

Now more than ever, businesses are looking for ways to relieve themselves of payments in the near-term. Strong lending technology partners are offering creative ways for lenders to not only retain business but win new business during this time. Some lending technology partners are offering their customers curated programs that allow them to contact existing customer businesses to offer them refinancing on their equipment finance loans.

For example, if a business is a long-term customer with a specific bank, yet their equipment is financed through another vendor, that bank would be smart to contact the customer regarding the refinance of their loan. If the bank can offer incentives such as no short-term payments, the customer is likely to take advantage of the offer, which only further solidifies their loyalty to the bank. With interest rates seemingly low, anything the bank refinances now will be a better deal than what the business could finance two or three years ago.

Planning for Recovery

The sudden shift in working environments has amplified the need for equipment finance lenders to update their tools and processes. It is critical to include digital and cloud-based options for customers who are now forced into remote working situations. The industry need for technological advancement is clearer than ever before. Companies that learn from the current business challenges and adopt agile solutions will remain more flexible and fluid in times of economic recession and can better prepare themselves for recession recovery.

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For quite some time, banks, credit unions, lenders, and even automotive dealers themselves have been discussing the need for more consumer-facing online shopping and borrowing options. Considering the current pandemic landscape we are all facing, it seems the automotive industry recognized the need for intelligent processing procedures before those in various vertical markets. While many were discussing the need for more sophisticated lending solutions, very few were acting on implementation. However, there are several tools available to lenders to simplify the lending process and help pivot strategy in times of economic uncertainty or a shift in shopping habits. For those lenders that feel they are at risk of losing borrowers to more established competitors, it is more important than ever before to take-action.

Similar to the way that dealer management systems helped automotive dealerships to shift many of their paperwork processes online, the same can be done today through modern loan or lease origination servicing systems. Dealers should focus their efforts on building a strong online presence that will lay the foundation for more advanced procedures with their lending partners.

The key to consistent growth and stability of any powerful company or organization is built by a strong foundation.  This remains true for dealers.  In theory, dealers should have the capability to build from their existing processes, procedures, and platforms. However, not all of them do. Advanced technology will allow for more sophisticated additions to be built from simple foundations. It is important to consider whether the existing loan origination system is both flexible and scalable. It is even more important when marrying both direct and indirect lending technologies together. Online shopping and borrowing technologies should be integrated with multiple sources making it easier to start small with the option to grow larger. 

When it comes to working directly with consumers and consumer-facing applications, lenders need intuitive technology for all processes. This means communicating with customers through the entire process which includes buying and financing to ownership. Consumers want access at any time from any device. Regardless of which phase a borrower may be in, it is most important to communicate each step to the borrower while protecting their personal data and documenting each step of the process to mitigate legal liability. Combining the needs of the lender with the needs of the borrower is part of that foundation which builds an online solution.

Solutions should be end-to-end and backed by a provider with experience and proven record of results and relationships with clients. Recognizing lender partners that not only meet the foundational needs of the organization but carry integrity and an eye for innovation can mean the difference between a successful online platform and a non-successful platform. For example, this is even more important in a dealerships digital retailing strategy. Still today, many dealers offer online financing resources to their customers, but when customers fill out an online credit application, the application is simply sent to the dealer as a potential buyer. The application is not sent to any lenders to start a transaction or facilitate a transaction, which is not truly a digital retailing experience at all.

The transition of enabling digital retailing services on the dealer website is quite complex when strict legislative regulations are considered. While it is possible to include an entire suite of finance offerings through the dealer website, it requires an end-to-end solution. There needs to be a way for the dealership website to transfer data to multiple lenders to get feedback and properly guide both dealer and customer through the process of structuring a loan. In other words, the deal needs to be more tangible.

It is important to consider technology that can easily evolve as the industry changes yet can match deliverables. The online lending process must include search functions that are vehicle-specific or financial-specific, offer products and rates, as well as credit applications, electronic signatures, and funding options.

The future of successful dealerships and successful lenders is in the art of borrowing and servicing simultaneously.  Providing online servicing options comes down to automating what was previously manual through legacy systems, digitalizing what was previously paper, and affording borrowers the ability to self-help. Consumers should be able to easily access their account or make payment online. It is important to note that the shift from indirect lending to more direct lending does not necessarily mean elimination of the dealer. Instead, it requires orchestration between all parties throughout the borrowing process. Technology platforms should provide a cohesive dealer-facing solution that allows access to all internal systems in the same way a borrower has access. The borrower requires dealer touchpoints along the buyer journey. Through this, there is synchrony between lenders and dealers, along with the technology they are utilizing. All of which, are key to successfully pivoting lending solutions to a more efficient online environment and strategy.

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