Automating the leasing process is complex and will not necessarily be practical for all situations, at least for now. But there are numerous cases where automated processes are both practical and implementable, and can also show a measurable ROI in a relatively short period of time. Leasing customers are becoming more and more demanding and are looking for convenient solutions, turning the time-to-yes into a critical success factor. Companies therefore feel compelled to enable the customer to carry out and complete the transaction process completely online and on their own without the need for a merchant.
Identity check via web-based video conferencing
The efficient and legally-compliant identification of customers before contract conclusion is an important issue. A current and significantly increasing trend in the DACH region is therefore the authentication of people without the need for physical interaction. Modern digital solutions such as web-based video conferencing make such authentication possible.
The advantages for first movers in the leasing industry are clear. While time-consuming face-to-face personal identification prior to contract conclusion or the sending of photocopies of identity cards by post or fax becomes irrelevant, conversion rates may be increased significantly at the same time. Using these innovative technologies which allow safe, fast and simple authentication to be performed using a PC, phone or tablet, companies can optimize their process-efficiency and reduce internal costs. However, it can also help prevent fraud and abuse through the provision of rapid and reliable information on personal identities.
With an ID verification tool, CRIF is already offering a solution that follows this trend. Fully automated identification is complemented by video-based authentication using ID document data sent online. The solution quickly, safely and efficiently identifies individuals based on their documents via video conferencing. The only requirement is an Internet connection and a camera on the end-user's device. For the leasing customer, this means a very clear advantage: they can buy services for which identification is necessary during the purchasing process, independent of the time and place.
Smart compliance with regulations
In order to fulfill regulatory requirements, the solution provides additional modules such as AML, PEP and beneficial owner checks in real time, thus offering the possibility to automate another phase of the process.
While the automation of online identification is an important step in the transaction, so is the digital submission of relevant documentation in real time. Printing out and posting documents can be a laborious task for many customers, who may consider it a good reason to cancel the transaction. New services for digital account checks are emerging in the DACH market, helping leasing companies to check and analyze data in real time and make a quick, safe decision on whether or not to accept the application. The customer can expect a fast closure of the transaction while enjoying maximum convenience.
Combining data for quick and safe decisions
Another topic where automation can be very useful is the combination of internal and external data with the aim of developing a selective risk model, allowing quick and coherent decisions to be taken throughout the whole organization. Thanks to its know-how, CRIF has supported a significant number of clients with its models to maximize growth and outperform the competition. CRIF provides risk and credit analysts with the ability to develop and implement scoring characteristics in the decision process without IT programming.
Best practice in Leasing
RCI Banque was one of the first market players to become aware of these trends and respond proactively. RCI Banque is a French bank specializing in automotive financing and services for customers and dealership networks of Groupe Renault (Renault, Renault Samsung Motors and Dacia) throughout the world and the Nissan group (Nissan, Infiniti and Datsun) mainly in Europe and South America.
RCI’s aim was to optimize internal processes and in particular its leasing application process. It was very important for the company to include individual rules in the process in order to influence the result. With StrategyOne, the CRIF decision management solution for automated decisions that leverages data and analytics, it found the perfect tool to realize this tailor-made approach. If one of the 14 self-defined rules applies, a manual process is initiated. The project also included the integration of a scorecard in the tool, which also influences the decision process. As rules can be adjusted or replaced easily by the internal risk management team itself, flexibility and a fast reaction time in the case of risk shifts or any kind of change is guaranteed. As a result, internal distribution processes improved thanks to a standardized decision process, while risks dropped significantly thanks to additional and more in-depth information.
