Optimisation and digital transformation for motor vehicle financing

Project Summary

The Avec team were engaged by a motor vehicle company to improve their financing processes including quoting, underwriting, financing & contracting with the aim of:

  • Optimising the end-to-end process and operating model, by using known methodologies such as Six Sigma, TQM (quality), Kanban and capacity modelling etc.
  • Reducing waste and improving capacity.
  • Identifying opportunities for automation and digitisation.

The challenge

The Avec team identified several key challenges, including excessive idle time per team member, a high number of reworked deals, frequent back-and-forth handling of deals, regular capacity constraints, long cycle times per application, and variability in processing times. Additionally, there was a low “first time right” measure for clean deals.

The solution

To address these challenges, the Avec team embarked on a three-phase approach. In phase 1, we modelled the current state (people, process, technology). Phase 2 involved analysing the current state and creating a compelling case for change. The Design Team, comprising Avec and selected client members, analysed the obstacles to achieving customer-centricity, efficiencies, and effectiveness. In Phase 3, we focused on transforming people, process, and technology. We developed a future operating model that integrated digital technologies, including Artificial Intelligence (AI) and chatbots, to streamline the application process, making it fast, simple, and satisfying. This allowed our client to introduce new products and services built on data and analytics.

The result

The implementation of our solution led to significant improvements. We applied Queueing Theory to make single queues more efficient than multiple queues and implemented the Kanban principle of “Pull” instead of “Push”. Robotic Process Automation (RPA) was used to automate repetitive, mundane tasks, and self-service kiosks were deployed at key dealerships, enabling customer verification through a combination of ID and biometric scanning. Partnerships with FinTech companies facilitated income and address verification, as well as verification of company and vehicle registration documents. Additionally, chatbots and AI were utilised to enhance customer interactions and monitor social media posts, resulting in improved customer engagement and streamlined processes. These initiatives collectively led to a reduction in idle time, reworked deals, and cycle times, ultimately enhancing operational efficiency and customer satisfaction.