EFG Companies, together with Northwood University, launched the second annual F&I Innovator of the Year Competition this week. Held during the fall semester each year, this competition leverages the out-of-the box thinking of today’s Gen Z college students, coupled with F&I industry leaders’ insight, to boost the F&I industry’s focus on innovation.

The annual F&I Innovator of the Year Competition pits six teams of Northwood’s junior and senior automotive students against one another to conceptualize and build a new F&I product, while earning course credit. With an F&I director as a mentor and guide, the competing teams develop a business case for their new F&I product that incorporates industry research, market viability and the product’s potential to facilitate F&I product sales in franchise dealerships.

The teams will also keep weekly YouTube video diaries of their progress, challenges and breakthroughs.

“The automotive industry is going through a period of extensive change,” EFG Companies president and chief executive officer John Pappanastos said. “Consumer expectations and buying habits have shifted towards a more value-conscious and long-term mindset. The Federal Trade Commission and Consumer Financial Protection Bureau are continuing to focus on transparent auto lending practices. Manufacturers are undergoing a shift with the rise of electric vehicles, connected cars and ride sharing services.

Each of these aspects of a dealership’s operations is in a mutually effective relationship with F&I. As new, young talent has brought significant advancements to other areas of the auto industry, it makes sense for the F&I industry to avail itself with new ideas from fresh minds, as well,” Pappanastos continued.

A panel of leading dealer principals from across the nation and EFG executives will judge the business case competition in late November, and crown the newest champion in early December. The winning team will take home $25,000, and more importantly, EFG Companies will develop the winning F&I product and launch it to the retail automotive marketplace. The company will donate a percentage of the profits from the sale of the product back to Northwood University.

“This competition puts Northwood University students at the forefront of the innovation that will forever change the dealership landscape,” Northwood University president Keith Pretty said. “Through this competition, our students have the opportunity to provide a never-before-seen solution to current dealership challenges and drive dealership profitability.

“This exemplifies our philosophy of hands-on learning and developing the leadership skills and talent necessary to bring the automotive industry into the future,” Pretty went on to say.

Last year’s winning team, Quantum Integration, applied consumer research, industry and mentor input and millennial sensibilities to create an F&I product for the connected car. The team’s product utilizes a mobile application to provide consumers a convenient way to stay current on vehicle maintenance, prevent theft or recover their vehicle.

EFG Companies will roll out the product in the fourth quarter of this year.

Richie Durso, from Quantum Integration, had this advice for this year’s competitors

“Think of real world problems and see how you can solve them to make people’s lives easier. Also, remember that your product can be a service and not just a tangible item. Even if you don’t win, the experience is priceless,” Durso said.

Now a senior at Northwood, Durso answered several other questions about the experience in a Q&A session shared by EFG Companies.

EFG: It’s been one year since you were named a winner of EFG and Northwood’s Innovator of the Year Award. Has Team Quantum Integration stayed in touch?

Durso: Collin and Jon graduated from Northwood in June and we have not had a chance to connect since they have moved on.

EFG: How did participating in the program grow your automotive expertise?

Durso: While I always felt that I was up-to-date on my automotive knowledge, the competition taught me new information about the F&I side of the business that I did not know.

EFG: In what ways has your involvement in the program influenced your future educational or career path?

Durso: This competition added more fuel to my drive. I have a strong passion and drive for the auto business and this competition reinforced my decision.

EFG: What are your hopes for the mobile app that EFG is now developing based on your team’s ideas?

Durso: I hope that it actually makes it to market! I also want EFG to stay in contact with my team and me regarding the development of the app and any marketing ideas.

EFG: What did you do with the award winnings?

Durso: My award winnings went to pay for daily living expenses, investments in stocks and a much-needed vacation to Florida.

EFG:  What are your career plans upon graduation?

Durso: I hope to be working at the corporate level for an automotive company, and would like to manage auto shows. I also have an interest in the financial aspect of the automotive business, including earnings reporting, guidance and industry trends. Being a part of the F&I competition has also sparked an interest in product development.