Reimagining Auto Financing for a Leading Canadian Bank
Case Study

Overview

The auto financing industry has undergone a significant transformation, with customers seeking faster approvals, competitive rates, and seamless digital experiences. A leading Canadian bank partnered with Tech Mahindra to modernize its automotive financing model, shifting from dealer-led financing to a direct-to-bank model.More

The auto financing industry has undergone a significant transformation, with customers seeking faster approvals, competitive rates, and seamless digital experiences. A leading Canadian bank partnered with Tech Mahindra to modernize its automotive financing model, shifting from dealer-led financing to a direct-to-bank model. This approach streamlined the financing process, eliminating traditional inefficiencies and reducing loan approval times from one week to just two days.

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Client Background & Challenges

The bank faced multiple challenges that hindered growth and operational efficiency:

  • Revenue Constraints: Heavy dealer commissions and pricing competition impacted profitability.
  • Dealer Dependency: Customers relied on third-party lenders through dealer networks, reducing the bank’s control over financing.
  • Inefficiencies in Processing: Extensive manual effort and back-and-forth communication led to delayed approvals.
  • Limited Growth Potential: With customers avoiding dealership visits post-pandemic, revenue stagnation became a major concern.

Key Solution Features

To address these challenges, Tech Mahindra collaborated with the client to develop a cloud-native, Azure-based auto financing platform, enabling direct financing between the bank and customers.

  • Digital Financing Platform: A centralized system allowing users to apply for and track financing requests directly.
  • User Management System: Secure onboarding and access control for applicants and stakeholders.
  • Automated Application Processing: Collection of applicant details, vehicle data, and financing terms without manual intervention.
  • E-Signature & Digital Contracting: Streamlined contract generation, reducing paperwork and approval time.
  • Rapid Deployment: The platform was designed for seamless integration, enabling quick adoption across multiple user groups.

Business and Community Impact

The solution delivered tangible business benefits, reshaping the bank’s competitive position in auto financing.

Enhanced Efficiency and Customer Experience

  • Loan approvals were reduced from 7 days to 2 days, improving turnaround times.
  • A fully digital process eliminated dealer dependencies and manual interventions.

Revenue Growth and Market Expansion

  • A new revenue stream was unlocked, reducing reliance on traditional dealership models.
  • The platform facilitated a 15-20 percent increase in net new applications.

Competitive Edge

  • Strengthened market presence with a direct financing model, reducing dealer reliance, increasing profitability, and enhancing efficiency.