Digital channels have emerged as the most efficient and effective way for auto lenders to maintain or grow their profitability despite the current macroeconomic conditions. Customers who use digital channels to handle their accounts have much higher overall satisfaction, bigger Net Promoter Scores, and lower cost to service than customers who use traditional methods, according to the J.D. Power 2023 U.S. Consumer Financing Satisfaction Study.
Senior director of automotive finance intelligence at J.D. Power Patrick Roosenberg stated, “In a challenging market, lenders have shifted their focus on costing containment and reduction.” He continues, “Transforming the conventional client experience into a digital relationship is vital. Consumers who manage their accounts through the lender’s website, mobile applications, and alert subscriptions are far happier and require less servicing. The lender and their client both benefit from the circumstances.”
The main conclusions of the 2023 study are as follows:
- Customer advocacy requires digital engagement. Auto loan brand promoters are 37% more likely than brand detractors to view billing statements via their lender’s app, 38% more likely to pay their bill digitally, 59% more likely to receive digital account alerts, and 48% more likely to contact customer service via the lender’s app.
- Data security is among the top concerns for digital customers. For lenders hoping to increase digital engagement, one of the biggest obstacles to digital adoption among auto loan consumers is the security of their personal information.
- Digital bill payment increases customer satisfaction. On a 1,000-point scale, consumers who use the lender’s mobile app to make their vehicle loan payments have an average overall satisfaction score of 876, an increase of 66 points compared to those who pay via check.
Furthermore, of all luxury brands, BMW Financial Services has the best customer satisfaction score at 876. Lexus Financial Services is in second place at 875, while Chase Automotive Finance is in third place at 870. However, With a score of 877, Capital One Auto Finance comes in first place among mass market lenders. Nissan Motor Acceptance Company (NMAC), with a score of 865, is ranked third, and Ford Credit, with 867 points, is ranked second.