iVendi has released a white paper detailing three strategies for dealers and finance providers to modernise motor finance operations.

These strategies aim to address the industry's shift towards digital-first finance experiences and stringent compliance demands.

The white paper highlights the industry's turning point, where traditional finance models and outdated processes are no longer effective.

Buyers now expect seamless, digital-first experiences, while compliance demands have become more stringent.

Many dealerships and lenders still rely on legacy systems, creating friction in the customer journey and potentially losing approvals, customers, and revenue.

iVendi suggests that dealers should prioritise consumers, drive efficiencies through technology, and recognise compliance benefits.

Traditionally, motor finance followed a dealer-to-lender model with limited provider options.

Modern buyers, however, expect choice, speed, and transparency. Businesses offering these attributes are more likely to succeed, according to the motor finance solutions provider.

By adopting a consumer-first approach with a multi-lender model, dealerships and lenders can offer instant finance comparisons, increase approval rates, improve compliance and transparency, and enhance the overall buying experience.

Meanwhile, digital tools can eliminate bottlenecks, reduce administrative work, and enhance the consumer journey, helping businesses close more deals.

Multi-lender platforms can simplify the loan application process by eliminating the need for manual data input, and digital self-service financing solutions can enable buyers to evaluate financing choices independently, enhancing user engagement.

In addition, AI-based analytics support lenders and dealers in making more informed decisions, lowering operational expenses and boosting approval and conversion rates.

On compliance, iVendi said, the FCA's Consumer Duty regulations position compliance as a business differentiator.

Consumers are more likely to choose dealerships or lenders prioritising transparency, fairness, and clear communication.

Key compliance strategies include embedding clear, lender-specific finance content into the buyer journey, using real-time eligibility checks for informed decisions, and implementing digital record-keeping to ensure FCA compliance.

In December 2024, iVendi and Close Brothers Motor Finance collaborated to streamline motor finance for dealers and customers.

"iVendi outlines strategies for modernising motor finance operations " was originally created and published by Motor Finance Online, a GlobalData owned brand.