Fintech continues to push into car lending as Chase partners with AutoFi

AutoFi

  • The San Francisco-based startup is joining with Chase, the first major US bank to go on the company’s platform.
  • Several fintech auto-financing firms are now in the space, trying to streamline lending for modern, digitally astute customers.

The car-buying experience isn’t one that a lot of people look forward to. But even after you’ve found a vehicle to buy or lease, a additional ordeal lies at the end of the process: financing.

A number of new fintech startups are working to ease this pain point and make it possible for consumers to seek out loans and leases using mobile devices. They have also begun expanding their partnerships with major automakers and banks, as both have figured out that more financing applicants can equal more business.

AutoGravity recently added Audi Financial Services to its platform, and now San Francisco-based AutoFi has joined with Chase.

“We share a common vision of using technology to deliver a delightful consumer purchase experience,” Kevin Singerman, AutoFi’s CEO, said in a statement.

AutoFi has worked with Ford, but Chase is the first major national bank to ally itself with the company.

“AutoFi helps dealers provide a fast and easy digital car-buying experience that consumers want,” Chase Auto Finance CEO Mark O’Donovan said in a statement.

Dealers were initially concerned that opening up financing to a wider range of technologies might reduce their role in that process, but as more fintech firms have entered the space, they’re learning that anything enabling customers to have a more seamless and speedy experience is an advantage.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.