The digital customer experience within the realm of auto lending has been identified as significantly lagging behind that of other industries. This disparity presents a clear opportunity for improvement, as revealed by the 2024 J.D. Power U.S. Automotive Finance Digital Experience Study. Despite the efforts of some lenders to excel, a concerning 40% of automotive finance websites and apps fail to meet even the most basic standards in terms of design, functionality, and ease of use.

Unlock the Potential of Auto Lending's Digital Customer Experience

Auto Lending's Digital Disparity

The 2024 J.D. Power study clearly showcases that the digital customer experience provided by auto lenders is far from satisfactory. While 60% of auto finance digital platforms manage to offer a foundational user experience, a mere 27% excel in navigation and the findability of information. This is a critical issue as it affects the overall user experience and satisfaction. For instance, imagine a customer trying to access essential features like account balance verification or payoff calculations. In many cases, they encounter difficulties due to the subpar design and functionality of these platforms.Moreover, the study highlights that only a minuscule 2% of auto finance digital platforms deliver a fully valuable user experience. This means that the majority of customers are left with a subpar experience that could potentially lead to dissatisfaction and a loss of trust in the lender.

Industry Comparisons and Rankings

When it comes to delivering strong foundational experiences, auto finance digital platforms lag behind other industries such as wealth management (73%), retirement plans (79%), and insurance (83%). This clearly indicates that auto lenders have some catching up to do. However, non-captive lender apps, which are built on robust mobile banking frameworks, have managed to outperform captive lender apps in terms of customer satisfaction.In the rankings, GM Financial leads captive lenders with a score of 710, followed by BMW Financial Services (706) and Lexus Financial Services (697). Among non-captive lenders, Chase Auto ranks highest at 715, with Wells Fargo Auto (698) and Capital One Auto Finance (695) not far behind. These rankings provide valuable insights into the performance of different lenders and highlight the areas where they need to focus on improving their digital customer experience.

The Importance of Streamlined Communication

Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power, emphasizes the importance of building customer loyalty and advocacy through streamlined, two-way communication. He points out that far too many lenders are treating their digital properties as mere transactional portals for bill pay, rather than as platforms for engaging with customers and providing value.By fostering better communication channels, lenders can enhance the customer experience and build stronger relationships. For example, they can provide real-time updates on account activities, offer personalized recommendations based on the customer's financial situation, and respond promptly to customer inquiries. This not only improves customer satisfaction but also increases the likelihood of customer loyalty and advocacy.The J.D. Power study, now in its second year, evaluates customer satisfaction with auto finance websites and apps based on various factors such as visual appeal, content quality, navigation, and speed. Findings are based on responses from 6,090 automotive finance customers gathered in August and September 2024. These findings provide a comprehensive understanding of the current state of the digital customer experience in auto lending and offer valuable insights for lenders to improve their services.