The motor finance industry faces significant disruption as innovative technologies link lenders and borrowers in a new digital ecosystem, White Clarke Group has said.
The claim was made in the company’s Global Technology Report 2017: Auto Finance in the New Digital Ecosystem, which was based on the findings of the tech company’s Auto Captives Summit, which took place at the end of 2016.
The summit and the report identified four main elements which are driving the new digital ecosystem:
• The changing nature of the customer base;
• The transformational nature of new technologies like Artificial Intelligence, Chatbots and Blockchain;
• The accelerating pace of technology causing disruption to traditional business models;
• The growing threat from cybersecurity and ever-growing regulatory and security demands.
Brendan Gleeson, group chief executive officer of White Clarke Group, summed up the findings:
“We are in an age of ‘connected intelligence’, surrounded by a range of products and services which link together to make up a digital ecosystem.
We are experiencing an explosion of innovation, which has a profound impact on how we interact with each other, and how businesses build and maintain a relationship with their customers.
To succeed in the new ecosystem, organizations must adapt fast –learning new skills, staying abreast of new technology and developing new models for the delivery of finance to avoid the threat from disruptors.”