One of the keynote sessions at next week’s Vehicle Finance Conference hosted by the American Financial Services is focused on how auto finance companies are now exploring innovative ways to harness advanced artificial intelligence capabilities to enhance operational efficiency, customer service, and talent development.

And it appears to be a needed strategy path if findings from the 2024 U.S. Automotive Finance Digital Experience Study from J.D. Power are any indication.

J.D. Power said auto finance companies that deliver a strong digital customer experience via their websites and mobile apps enjoy much higher levels of digital self-service and have customers who are significantly more satisfied than those of other credit providers.

However, J.D. Power’s study showed 40% of automotive finance customer digital experiences do not meet the most basic standards for modern design, problem-free operation and ease of navigation.

“Lenders have a huge opportunity to build customer loyalty and advocacy by fostering streamlined, two-way communication, but far too many are treating their digital properties as a transactional portal that only exists for bill pay,” said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power.

“These digital properties should be seen as two-way portals to communicate with customers on a month-to-month basis, while improving customer satisfaction and reducing cost to serve,” Roosenberg continued in a news release.

At AFSA’s conference in New Orleans, four industry leaders will be discussing how they are leveraging the latest AI trends to maximize opportunities, minimize risks, and unlock potential for the auto finance business. Scheduled to appear are:

—Brajesh Kumar, chief technology officer, Toyota Financial Services

—John Pizzi, head of innovation and strategic partnerships, FIS

—Joseph Portera, chief risk officer, Capital One Financial Services

—Chris Urban, executive vice president of risk and underwriting, Westlake Holdings

Some key findings of the 2024 study from J.D. Power might percolate into the conversation since they include:

Just 2% of websites and apps deliver comprehensive digital experiences

Overall, J.D. Power indicated just 60% of customer interactions with automotive finance websites and mobile apps meet the basic criteria for a foundational user experience (i.e., websites and apps are modern in their appearance and have no issues with log-in and work reliably).

Of those, researchers found 27% of digital experiences meet key criteria for findable information and navigation, and just 2% meet the criteria for delivering a valuable user experience that includes the ability to verify payoff amounts, view account balance and select payment amount.

Auto finance lags other industries on digital experience

When compared with self-service websites and mobile apps in similar industries, J.D. Power determined auto finance digital experiences substantially lag.

While just 60% of auto finance digital properties deliver a foundational user experience, when compared with other industries in which J.D. Power conducts studies, that percentage jumps to 73% among wealth management digital offerings, 79% among retirement plan digital offerings and 83% among insurance digital offerings.

Non-captive apps outperform captive apps

J.D. Power also mentioned customers using a non-captive app have a substantially more satisfying digital experience than those using a captive app. Researchers said this is partially due to non-captive apps having the mobile banking framework as a foundation.

While there certainly appears to be room for improvement, J.D. Power highlighted some auto finance companies did well in the survey.

GM Financial posted highest in digital experience satisfaction among captive finance companies with a score of 710. BMW Financial Services (706) ranked second, and Lexus Financial Services (697) ranked third.

Chase Auto ranked highest in digital experience satisfaction among non-captive finance companies with a score of 715. Wells Fargo Auto (698) placed second and Capital One Auto Finance (695) landed in third.

The U.S. Automotive Finance Digital Experience Study, now in its second year, evaluates customer satisfaction with auto finance websites and apps used to manage their accounts based on four criteria (in order of importance):

—Visual appeal
—Information/content
—Navigation
—Speed

J.D. Power mentioned the 2024 study is based on responses from 6,090 automotive finance customers who used their finance provider’s desktop website or mobile app. It was fielded in August and September.

Faizaan Ghauri is chief strategy officer for NETSOL Technologies, a global solutions provider for the asset finance and leasing industry, serving automotive and equipment OEMs, auto captives and financial institutions across more than 30 countries.

Ghauri projected the auto finance industry in the U.S. is expected to be characterized by increased digital integration powered by AI, the greater adoption of autonomous vehicles, better financing options due to lower interest rates, and the rise of Gen Z’s preferences for online and mobile car buying and financing.

“AI will play a significant role in auto finance risk assessment, fraud detection, and personalized customer service,” Ghauri said in a message to Cherokee Media Group. “Financing companies will utilize AI to streamline underwriting processes and provide better pricing for borrowers.

“In addition, auto finance businesses will consider using AI agents to help automate the most expensive back-office tasks from credit underwriting onwards. Automated data ingestion can save 30–40% of the hours spent on manual data entry, bringing process efficiency,” Ghauri added.

Tarry Shebesta is CEO of FlexPath DXP, a company associated with digital identity verification and credit prequalification technologies. Shebesta, who also is president of the National Vehicle Leasing Assoc (NVLA), touched on another way AI is going to continue to help auto financing.

“While fraud presents challenges, AI offers groundbreaking opportunities,” Shebesta said in an industry message. “From generative AI personas to process automation, AI is reshaping how we engage with customers, improve operations, and drive growth.

“While I’m no AI expert, I’ve had the privilege of working with brilliant innovators exploring these technologies,” he continued. “My own experiences with tools like ChatGPT have been both inspiring and humbling—demonstrating AI’s potential to transform businesses.

“I encourage you to explore AI within your organization to uncover its vast potential,” Shebesta went on to say.