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Will Fintech Solutions Entirely Transform Auto Finance

With the growing influence of Fintech companies, the automobile sector has been significantly relying on a wide range of financing solutions featured by emerging digital platforms. Many traditional service providers have collaborated with Fintech solutions to enhance their marketability. However, the recent developments have led to a growing competition between some of the emerging Fintech services and conventional Auto Finance companies.

In a recent interview, Chris Chestnut, the president of Payix has expressed his views on the growing influence of Fintech ventures. According to him, the Fintech sector is backed by huge investments and innovative developers who are striving to offer breakthrough solutions, and we cannot expect a full collaboration with the classic ventures. Payix is a week-old venture that offers lenders with various types of white-label payment channels enabled through mobile and online applications. In his statements, he has further explained the benefits of a self-serving platform where borrowers and lenders transact directly with each other using a preferred payment option.

Recently, California-based AutoGravity has partnered with Westlake Financial Services, Mercedes-Benz Financial Services, and First Investors Financial Group. AutoGravity is a full-fledged digital marketplace for car buyers. According to the company’s Chief Marketing Officer, Serge Vartanov, the company aims to offer a high-performing digital platform for its consumers, dealers, and lenders. He has attributed the changes as an effort to provide its clients with a user-friendly and cost-effective auto finance platform that can be easily accessed and controlled via mobile apps.

AutoFi, an established Fintech auto finance company, has joined hands with Ford Motor Credit. The collaboration took place in late January and according to the reports, Ford Motor Credit has invested in the AutoFi platform for supporting its technology-driven auto financing services.

Blinker and Honcker is yet another Fintech entrant that assists car buyers by providing auto loans and lease options. The platform also offers lending services for buying cars from private parties.

As per Chris Chestnut, the collaborations and partnerships definitely pave ways for business development through sharing of data, intelligence, and processes. Nevertheless, he attributes corporate benefits as the main reason for such collaborations rather than a desire to support each other’s cause.

 

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