BROOKFIELD, Wisc. -

Fiserv highlighted that dealers and lenders used its Automotive Loan Origination System (LOS) to process more than 13.6 million credit applications last year, an increase of 16.5 percent from the 2012 total.

Fiserv said more than 4.6 million contracts were funded on Auto LOS — a 14.3 percent increase over 2012 — of which nearly 900,000 were electronic contracts (e-contracts).

The company pointed out 2013 was the first full year that e-contracting capabilities were integrated into the company's end-to-end solution for automotive loan origination.

Fiserv contends this substantial volume of credit applications and funded contracts reflects the return to health of the U.S. automotive industry, which registered robust growth in sales and financing for both new and used vehicles.

Kevin Collins, president of lending solutions at Fiserv, explained that the growing adoption of e-contracting mirrors the industry's transition to new technology and digital lending. Collins indicated e-contracting systems can enable dealers to submit an electronically signed contract to a lender, greatly reducing the time needed to approve and fund loans, minimizing errors and leading to improved customer satisfaction.

"Increasing automobile sales and the recovering economy contributed to the impressive growth of credit applications and contracts supported by our Automotive Loan Origination System," Collins said.

"Captives and their dealers realized the role that technology can play in reducing costs, improving customer satisfaction and facilitating faster decision-making," he continued. "This led to the impressive volume gains and growing adoption of e-contracting processes."

By using e-contracting through Automotive LOS from Fiserv, Collins went on to mention dealers have been able to realize same-day or next-day funding and approval of contracts, a significant improvement over the laborious and slow paper-based contract process.

Fiserv technology gives lenders access to robust tools that help them better understand their borrowers' financial situation, and offers a holistic view of their entire lending portfolios so they can make smarter lending decisions and close more deals," Collins said.

"The efficient and error-free execution of e-contracts helps lenders reduce costs by eliminating paper, deliver high-quality service and remain competitive in today's auto finance market," he added.

Fiserv reminded dealers and finance companies that the Automotive Loan Origination System is a comprehensive solution for automotive loan origination, from electronic application capture through efficient credit processing, funding verification, validation and booking of new loans and leases.

"The system assures a fast and efficient origination process, enforces compliance, mitigates risk and promotes profitable growth by lowering processing costs without sacrificing quality for quantity," the company said.