Perhaps it’s one of the most consistent trends in all of auto finance nowadays. It’s the continued adoption of digitized contracting and documentation workflows by auto retailers and their lending partners.

That’s the main conclusion from analysis by Wolters Kluwer Compliance Solutions for its Q2 Auto Finance Digital Transformation Index.

Key findings from the second-quarter index included:

—Quarter-over-quarter growth: eContracting volume increased by 7.07% from Q1 2025 to Q2 2025.

—Year-over-year growth: A notable 9.26% increase was observed from Q2 2024 to Q2 2025.

—Four-year trend positive: Wolters Kluwer said the long-term trend highlights substantial digital adoption, with remarkable 116.26% growth in eContracting dating back to Q2 2021.

Wolters Kluwer acknowledged digital auto securitization activity experienced a noticeable downturn in Q2, but the longer-term view still indicates overall growth

Key auto ABS trends on the digital front mentioned in the index update included:

—Quarter-over-quarter decrease: Digital auto securitizations decreased by 46.21% from Q1 2025 to Q2 2025.

—Year-over-year decrease: A more substantial 55.26% decline was recorded from Q2 2024 to Q2 2025.

—Four-year trend: Despite recent quarterly declines, the four-year trend shows an overall increase of 22.91% since Q2 2021, indicating that the market has grown considerably over this period, even with recent fluctuations.

“The Q2 2025 Auto Finance Digital Transformation Index clearly underscores the imperative for digital workflow adoption in the auto industry,” said Matthew Babcock, who oversees digital lending product strategy for Wolters Kluwer.

“From significant operational efficiencies to enhanced customer experiences to faster transactions and reduced paperwork, digitization is providing the strategic advantages that are foundational to the future success and resilience of auto finance,” Babcock added.