An Australian company has developed mobile technology which reduces the time taken to secure finance for a second-hand vehicle from days to less than half an hour, enabling the lender to approve the loan in less time than it takes to test-drive the vehicle.
By connecting vendors, brokers and lenders through a digital platform, mobile app Verimoto enables financing for private vehicles, by collecting, processing and verifying data.
Verimoto’s Motor and verification system was the winner of Best in Digital Commerce in the inaugural Which-50 Awards, announced last month. The awards celebrate initiatives that make life fast, simple and easy for customers.
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Verimoto was built by Sydney-based technology shop, Lakeba, which uses a neural network to probe the internet for frustrations people voice publicly online. The business conceives, creates and commercialises solutions based on common complaints.
This technique identified that private second-hand vehicle financing was a pain for both buyers and lenders.
“Multiple steps and days are involved in viewing the vehicle, deciding to buy it, paying a deposit, arranging for the finance company to inspect the vehicle, verifying the buyer’s identity, confirming the seller’s identity, authenticating the car’s identity, qualifying the buyer’s financial standing,” explained Giuseppe Porcelli, chief executive officer of Lakeba Group.
“It’s akin to herding cats, coordinating suitable times with the seller for the manual inspection of the vehicle, authenticating the seller’s documentation; and checking the buyer’s identity and financial standing.”
After these steps, documents must be submitted and validated before the loan could be approved. On average this process could take seven days, putting the deal at risk.
“Typically, it all gets too hard for the sellers of vehicles, who often land up accepting a lower cash offer from someone who doesn’t require financing. This leaves the lender out of pocket, leaves the original buyer with no vehicle and the seller accepting an unnecessary discount.”
Finance on the go
Verimoto aims to accelerate and simplify the vehicle loan approval process, reducing time, costs and the risk of fraud.
The Verimoto process is initiated by the broker, who contacts the seller of the vehicle by text or email, requesting they download the Verimoto app. From there, the app guides the seller to take pictures of the vehicle and other requested documentation.
The process will identify the seller, confirm other important details including the vehicle’s registration, ownership, and location, and verify the seller’s bank details so money can be transferred faster and more securely.
As a final step, Verimoto then automatically sends all the information to be checked and verified against the databases of the relevant government bodies, with a fully detailed report being generated for the lender to review ahead of finalising the loan.
Since its launch in October 2018, Verimoto has processed over 1,800 transactions, with thousands of brokers engaged; and four major lenders accepting the information generated: Green Light, Macquarie Bank, Pepper Money, RateSetter and Stratton.
The solution was co-created with the input of major lenders, who then trialled the proof of concept, testing it against their business processes and customer feedback.
Mobile, Mobile, Mobile
Porcelli says Lakeba has been approached by other sectors and industries interested in remotely identifying and verifying assets.
The power of the solution lies in mobile, which Porcelli says has an enormous opportunity to improve our lives beyond what we are currently using it for.
“It’s the hyper-connected supercomputer people carry with them in every walk of life. It’s superior capabilities largely limited to the use of social media and email – rather than as a productivity tool,” Porcelli said.
“This largely untapped potential is also Australia’s competitive advantage – given our deep smartphone penetration. It gives us the perfect environment for creating robust productivity solutions appealing to export markets.”