Auto lending may be paperless in the next decade

October 16th, 2014 | Posted by Kevin Corley in Document Management | Workflow
Within the next ten years auto loans will be paperless, one finance executive stated.

Some experts think that the auto lending industry will go paperless within the next decade. 

Bill Jensen, who works for Chase Auto Finance, said at the Auto Finance Summit in Las Vegas that by 2020 the auto lending industry will be paperless, according to Automotive News. For some time the industry has attempted to reduce paper use, but it has consistently failed. 

Paperless businesses enhance security and streamline operations, the Association for Information and Image Management explained. One advantage of removing paper from the office is the return on investment. While it may be costly to implement a document storage system, the money saved will result in a significant ROI. For some companies, a return is possible in as soon as a few weeks to a month. 

Part of the reason savings are so significant is a reduction in printing costs, according to the organization. Producing paper documents requires paper, toner, ink, printers and regular maintenance for all the hardware. The elimination of printing costs alone can save a company up to $500 per person annually. In addition, once files are printed, there is a chance that they get lost. Around 7 percent of all physical documents are lost or misfiled Use of document storage solutions can virtually guarantee file security. 

If the auto lending industry does go paperless, as Jensen believes, then business operations are likely to become much more efficient. He added that loans won't be the only thing to go paperless. In addition, in the next decade consumers will be able to make partial payments using digital technology, so they are able to pay off portions of their debt whenever they have extra cash. 

Brought to you by Image One Corporation providing complete information governance since 1994.

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