White Clarke Group cautioned auto finance companies that they will face “enormous” changes in the way they operate in 2016.

Why?

Analysts said this week that finance companies will see challenges that are driven by an explosion of innovation resulting from the emergence of new technologies and an exponential growth in FinTech start-ups.

The White Clarke Group 2016 Global Tech Report identified six key commercial and technology trends that will impact auto finance this year. Those trends included:

— Innovation explosion

— Artificial intelligence

— Rise of the millennials

— Connected services

— Big data

— Data security

“It is clear that the industry is divided between those who believe that the industry faces revolutionary change affecting all aspects of auto finance business and those who expect the industry to be able to incorporate and evolve online within their existing traditional auto finance framework,” White Clarke Group vice president Brendan Gleeson said.

“The paper and presentations together are part of a wider industry debate which is seeking to help finance providers understand and respond to the opportunities and threats from the ongoing industry digitalization,” continued Gleeson, who orchestrated the report that can be downloaded here.

White Clarke Group also discussed its findings in the video available at the top of this page.