Krungsri Auto identifies trends for auto finance industry in 2018

Pairote Cheunkrut, head of Krungsri Auto Group, Bank of Ayudhya, said: “Technological disruption has brought about significant changes in consumer behavior and new business models, forcing brands across industries to transform the way they operate to increase their competitiveness. In the past few years, a large number of automotive finance companies in Thailand have utilized digital platforms to expand customer base, strengthen relationships with existing customers and maximize service efficiency.
“While delivering the best customer experience will remain the key focus of every brand, we will see more and more auto finance lenders push industry boundaries. Krungsri Auto has identified three trends that will define next year’s market.”
1. Digital Lending
With recent widespread adoption of digital payment, the need for more comprehensive auto finance services on digital platforms has considerably increased. According to a survey by PricewaterhouseCoopers (PwC), 83 per cent of car buyers say they are interested in learning about financial information before visiting a dealership. Pairote said: “In 2018, major automotive finance brands will be launching digital lending service. This will enable customers to apply for auto loan, submit documents, follow up on approvals, receive loans and check their statements in real time via websites or mobile applications. Additionally, to protect privacy and ensure customers’ trust, security features such as e-signature and e-identification will be implemented in auto loan application process.”
2. Personalization
In addition to traditional criteria for customer segmentation such as occupation, age, gender and income, for next year customer’s identity and lifestyle will play a bigger role in new product development. “Fueled by consumers’ preference for more personalized products and services, many auto finance brands increasingly focus on closely studying customers’ behavior at every touch point. With data on each customer’s chosen communication platforms and payment methods, brands will be able to deliver them the right solutions at the right time. Another factor that is becoming more and more important is ‘Pace of Life’ of consumers. For example, customers with contracts nearing completion tend to start looking for new cars whereas customers with retired parents are likely to look for car accessories such as wheelchair,” Pairote said.
3. Infinite Partnership
In an era where technology has broken down countless barriers to business operations, the forms of partnerships in automotive finance are becoming increasingly diverse. Pairote said: “We will see more and more auto finance companies partner with brands from outside the industry. Their partners will no longer be confined to car manufacturers or dealers but will encompass the use of third party’s platforms to expand communication channels and collaborations to introduce innovations with application developers, FinTech start-ups or e-commerce companies that can unlock possibilities in meeting customer’s mobility lifestyle as well as improve their products and services.”
“Although staying ahead of the ever changing business landscape means higher technological investment, this wind of change is a unique opportunity for brands to embrace new tools, push boundaries and listen more closely to consumers, which ultimately contributes to more efficient services and truly seamless experience.”