JPMorgan and AutoFi Streamline car Financing Applications
Over one year after they unveiled their online car sales and financing deals, Chase Auto Direct, JPMorgan Chase partners with the Californian start-up AutoFi. Their platform will enable the bank to address a larger proportion of car drivers.
With this entirely digital tool, AutoFi sets a link between financial companies, car dealers, and their customers. This partnership would allow drivers to directly access the bank’s financing solutions online.
Once they chose a car, customers may receive and opt for a credit offer from JPMorgan Chase, prior to selecting their preferred financing terms. The full process can be conducted online and no time limit applies.
JPMorgan Chase is the first bank in the UK to partner with this start-up. The point for them is to design the best possible customer experience as they buy a car through a fully integrated financing process, including electronic signing for the contract. The bank claims this service is intended to meet their customers’ expectations for a streamlined purchasing process, and be provided advises and services.
Comments – Applying digital tools to car financing services
A survey conducted online by Harris Poll showed that 83% of the American people interrogated confirmed they would prefer not to spend too much time at car dealerships when buying a vehicle. US banks are then paying attention to FinTechs whose core business relies in proposing digital platforms for car sales/purchases. All the more that e-merchants are quickly reaching out for the automotive market. Considering this fact, the US bank chose to build bridges with AutoFi’s platform.
Prior moves have been announced by JPMorgan Chase on the financing market. They also partnered with the SME-dedicated loan platform, OnDeck Capital, on proposing a dematerialised offer for loan applications up to 200,000 euros.
Car manufacturers’ captive financing companies are also getting provided with the means to design digital processes. Volkswagen Financial Services invested in AutoGravity to propose mobile-based financing offers. And the US manufacturer Ford, also partnered with AutoFi on developing an online car sales service. The platform is being expanded with additional offers to attract potential connected buyers.