A fintech company has launched a 'three click' car loan which enables dealerships to green light applications within two minutes.
Developed by AusLoans Finance Group, an automotive finance broker group, the new Zink technology has tripled productivity for its in-house brokers since being introduced in October.
The company spent two years developing the technology and plan to offer it to 1,100 dealerships across Australia in the coming months.
All that’s required is a photo of the driver's licence and, within two minutes, a 'traffic light' assessment is provided; green means it’s a go, orange warrants further investigation and red means the potential borrower is not currently eligible for a loan.
AusLoans Finance Group MD Rodney Michail said, "We have already experienced a three time increase in productivity with our in-house team and believe Zink will have even greater efficiencies for dealerships. I am confident that in that setting, we will be able to double that number again.
"This will save the dealership - and the customer - considerable time. That assessment would usually require a 30-minute conversation, significant paperwork and could damage the customer’s credit, whereas this process leaves zero marks on their permanent file.
"[The new technology] has the ability to change the way the industry operates. It puts the focus squarely on the customer experience, which is a win-win all around.”
According to Michail, dealerships are likely going to need financial licences to offer car loans by mid-2020. As such, Zink is a well-timed and credit safe option that both increases productivity and ensures compliance.
"Dealerships are going through the biggest change they’ve faced in 40 years in the wake of the Hayne commission, and it’s putting pressure on an industry that is already experiencing a tough time with new car sales falling consecutively for 20 months now,” he explained.
"When you blend technology with people, you significantly boost productivity, customer satisfaction and operational efficiency. Zink has the opportunity to do all those things."
Once eligibility is confirmed via the technology, finance options from AusLoans’ panel of 40 lenders are offered to the borrower, rather than a customer being presented with just one choice at the dealership.
Further, Zink was designed to cater to the largest emerging car market – millennials.
"Most millennials are beginning their car search on their smart phones, so this technology allows them to make their own pre-assessment of their financial situation and cars that suit, increasing their experience when they arrive at the dealership," he said.