Fintechs offering task automation attract investment

Fintechs are focusing on automation solutions for lenders and manufacturers in an effort to streamline the car buying and financing process and attracting increased investment from venture capital firm Autotech Ventures along the way. Autotech has invested more than $500 million into about 40 startups in the past seven years, most recently buy-here-pay-here platform Carpay , powersports marketplace provider Rollick and online recreational vehicle rental marketplace Outdoorsy . Investments span a variety of automation providers that address the pain points that plague consumers and businesses when it comes to buying, selling or financing vehicles , Autotech Managing Director Quin Garcia told Bank Automation News ’ sister publication, Auto Finance News . “If you look across our portfolio, the majority of our companies are software-oriented companies that use software to automate tasks,” he said. A growing trend Fintech investment is a growing trend across the auto finance industry as lenders and retailers look to automate tasks and limit friction. Irvine, Calif.-based subprime lender Consumer Portfolio Services, for one, has invested in artificial intelligence (AI) and machine learning (ML) to grow its origination volume and manage its operational risk. The lender leverages AI- and ML-powered scorecards across multiple aspects of its lending operations. Meanwhile, CarMax also made technological advancements last month to improve the omnichannel buying and financing experience for consumers. The retailer expanded its pre-qualification product nationwide and is working to integrate online car buying and selling with in-store experiences. <img class="wp-image-56409643 size-full" src="https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-scaled.jpg" sizes="(max-width: 2560px) 100vw, 2560px" srcset="https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-scaled.jpg 2560w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-300x130.jpg 300w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-1024x442.jpg 1024w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-768x332.jpg 768w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-1536x663.jpg 1536w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-2048x884.jpg 2048w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-600x259.jpg 600w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-750x324.jpg 750w, https://www.autofinancenews.net/wp-content/uploads/2022/07/canstockphoto71634634-1140x492.jpg 1140w" alt="" width="2560" height="1105" data-pin-no-hover="true" /> © Can Stock Photo/alexandersikov Silicon Valley-based Autotech Ventures provides startup companies with capital, industry contacts and market intelligence along with support in talent recruitment and fundraising, according to the company website. Founded in 2015, the venture capital group has made 59 total investments and was a lead investor for dealership payment platform Bumper , bicycle insurance company Laka and trucking industry innovator TruckLabs , according to Crunchbase. Autotech has exited from several companies, including Lyft and Digital Motors, which was acquired by TrueCar in June. “We invest heavily into startups related to auto commerce, including auto fintech, and we like to bring together entrepreneurs who have a dream of solving auto commerce problems with tech,” Garcia told AFN . Editor’s Note: This is an edited version of an article first published on Bank Automation News’ sister site, Auto Finance News . Bank Automation Summit Fall 2022, taking place Sept. 19-20 in Seattle, is a crucial event on automation and automation technology in banking. Learn more and register for Bank Automation Summit Fall 2022 .

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