Growing Importance of Auto Finance

The auto-financing sector is undergoing significant transformation due to macroeconomic shifts, changing customer behaviors, and the impact of COVID-19. The pandemic has caused a sharp decline in new and used car sales, disrupted traditional mobility patterns, and boosted interest in digital sales channels. Fintechs, OEMs, and independent leasing companies are reshaping the market with innovations like subscription-based leasing, which offers flexibility and bundled services like insurance and maintenance. As consumers increasingly prefer digital and contactless experiences, traditional dealerships are adopting online platforms and virtual services. However, auto-loan growth remains sluggish, while leasing is growing as consumers seek shorter contracts and pay-as-you-go models. To stay competitive, companies must enhance risk management, optimize pricing, and adapt to evolving mobility demands, including integrating rental and shared mobility into seamless multimodal solutions.