The auto loan sector is growing rapidly. So thus the complexities surrounding loan processing work. Consumers want faster and more efficient loan processing while loan providers want to cut operating costs while maintaining process efficiency and accuracy. RPA is a solution to meet these business objectives and can be embraced as early as possible to drive more revenue in the auto loan sector.

There are various ways through which you can digitize auto loan processing work and help your resources to focus their energy and efforts in doing high-value tasks where critical reasoning is required. It not just enables you to finish rule-based tasks quickly but also results in better productivity, quality, and delivery time. Faster services of superb quality elevate customer satisfaction levels and also drive more revenue to the company’s coffers.

There are various tasks that you can automate using robotic process automation (RPA) technology to gain better profits and customer satisfaction. This blog is a reflection towards this aspect.

RPA Use Cases for Auto Loan Sector

1. Loan Application Processing:

This job involves a lot of effort that consumes time and goes through various stages before a loan application either gets approved or rejected. Many times, a customer needs to wait for several weeks to get their job done. Automating auto loan processing using robotic process automation (RPA) can help you complete this task in very little time.

An advanced robotic process automation (RPA) solution makes the loan management process easier in the following ways:

  • You can provide tailored loan applications as per the specific loan product and jurisdiction’s regulations (local or international).
  • Robotic process automation (RPA) solution can give all details about required documents to users. Also helps in educating about the complete loan approval process in detail with timelines for better clarity and transparency.
  • The RPA system can collect documents, read inputs from them, store them in different loan processing systems/applications.
  • Proves helpful in validating bank account details.
  • Gives auto-updates to customers about loan processing status via email or SMS services.
  • Moves application to different stakeholders for approval for faster processing of auto loans.

2. Loan Underwriting:

This is an important work while processing auto loans. It runs behind the scenes but is considered as a mundane task that can easily be executed with the assistance of RPA bots. You can analyze and verify your lender’s income, assets, debt, and property details using digitalization powered with automation. It is interesting to note that today’s advanced loan processing systems allow lenders to interact with accounting and tax applications to extract required financial data for credit risk assessment. By automating auto loan processing, you can do a thorough analysis of credit ratings that proves helpful in reducing credit risk and improving portfolio yield.

3. Credit Presentation & Decisioning

Preparing credit presentation is a highly rigorous exercise that consumes a lot of time while doing loan processing in the auto loan business. It requires executives to collate several distinct but closely related documents that prove helpful in taking the right decision. Whether to approve or reject a loan application. The commercial auto loan market predominantly depends on humans to make decisions. Automating loan processing work can help executives to pre-screen applications based on the business rules of lenders and assist loan officers to make fast decisions.

4. Covenant Monitoring

Even after the completion of loan processing work, enterprises need to evaluate the risk associated with each account – annually, quarterly, or even monthly sometimes. Executives need to fetch financial data from different legacy systems to evaluate ticklers, covenants, and policy exceptions. Automated covenant solutions assist in managing this job better. It brings greater efficiency, accuracy, and effectiveness in the loan management process and offers peace of mind to loan officers. Any breach in the contract is immediately updated to designated loan officers for further remedial actions. Digitization in this work creates better trust amongst employees and makes them feel confident to execute their duties without any hassle.

5. Fraud Detection

Automation powered with RPA along with AI enables auto loan providers to detect any potential threat that could impact their business adversely. Using smart automation, you can verify loan applications through an AML mechanism and third-party affiliation to eliminate the chances of fraudulent loan applications.

6. Loan Document Creation

In auto loan processing and management work, enterprises deal with a lot of files and reports. Without automation, executives need to fetch data from different resources and prepare numerous voluminous reports on a daily basis. Manually doing this work not just consumes enough bandwidth of employees but also leads to inaccuracies in reporting that further impact the quality of analysis and decision making. Using RPA, you can prepare reports of any kind, type, and size within a few minutes. Sometimes in seconds, depending upon the nature of the report and the complexities involved.

7. Data Backup & Migration

Data backup and migration are also very important and time-consuming tasks when done manually. These tasks are also complex in nature that require technical expertise when performed manually. But with automation, these tasks become very easy and can be completed in a very short time. That too without any trouble.

Using automation, you can auto-schedule loan data backup work and even process data migration from one legacy system to another to achieve data management goals. You can even add an extra layer of data security by enabling high-end encryption and robust data access control mechanism to meet your data security business needs.

8. Payment Alerts

RPA enables systems to send auto-updates to users about their EMIs dues date. You do not need to hire an extra employee to manage this task, RPA bots work independently and can send email/SMS to thousands of people in one go. You can customize your loan processing system to make settings to help lenders get alerts about any missed payments to handle bad debt appropriately as per policy and on time.

9. Regulatory Compliances

Auto loan providers need to adhere to various rules and regulations to carry out their business operations without any trouble. But laws do not remain constant. They change often and increase the pain of auto loan executives to make necessary changes into their various applications and systems. Using RPA you can reduce a significant chunk of this complex work. RPA system enables you to integrate your lending software with the right compliance solutions. Any updates in the laws and regulations are submitted into the central system and changes are made accordingly automatically with little supervision efforts by humans.

Automate Auto Loan Processing With Vraimatic

We at Vraimatic have a proven track record of delivering leading-edge automation solutions to enable digital transformation. Our RPA experts can help you design customized automated solutions for your business needs. We ensure a good return on investment along with providing unique business value in terms of productivity and efficiency. Contact us now to unleash the true potential of automation to chart on a path of boundless success.


Phone: 1-855-203-8196