How Nordic auto finance providers can benefit from the power of Open Banking

The Nordic automotive industry is undergoing a revolutionary shift. There is a surge in new OEMs, fuelling heightened competition and the eclectic vehicle wave is reshaping the landscape. On top of this as leasing and lending rises in the Nordics amongst economic pressure, so too does the risk of fraud and defaults. 

Open Banking has emerged as a dynamic force, providing not just a seamless financial experience but also mitigating risks for auto providers.

But how? 

Point 1: Optimising customer journey

Accurate and real time financial data sourced from Open Banking is an invaluable resource for autofinance providers. This is a critical aspect of providing the best customer experience by allowing applicants to get answers on their lease or loan suitability in minutes rather than days.

Point 2: Mitigating risks

Open Banking also plays a crucial role in decreasing the risk of fraud and defaults and orders from the FSA. By moving on from gathering and processing vast amounts of paperwork that can be at risk from first party or third party fraud, using Open Banking ensures a secure and trustworthy process in the Nordic auto industry's evolving landscape.

Point 3: Increase brand reputation & competitiveness 

By employing a seamless digital customer experience you’ll improve customer loyalty and reputation. This also helps support your business stay competitive by decreasing cost of acquisition, reducing churn and increasing customer recommendations.

Point 4: Increase sales activity and customer success

By minimising manual processes, Open Banking expedites the loan approval process, enabling quicker and more accurate decision-making. This allows your team to dedicate less time to approving financial applications and instead focus on other areas of sales or customer success. 

Point 5: Cost Efficiency

As the cost of customer acquisition increases, access to accurate and up-to-date financial data through Open Banking can help auto finance providers in automating various processes, reducing the need for manual intervention. This, in turn, leads to cost savings and increased operational efficiency, leaving more money for marketing and other activities to increase and delight customers.

Point 6: Regulation Compliance

It’s no secret that the increase in regulations relating to lending and leasing are coming thick and fast across the Nordics. But by using Open Banking autofinance providers can access comprehensive applicant information, allowing them to effortlessly meet regulatory requirements while ensuring optimal lending decisions