The majority of AI-driven auto lender Lendbuzz’s originations are automated, thanks in part to AI tools and an ability to optimize repetitive, manual tasks in underwriting.

Lendbuzz has a goal of 90% automation in the loan origination process, Chief Executive and co-founder Amitay Kalmar said during the “Digital Strategies for Exceptional Customer Experiences” Auto Finance News webinar on July 15. Auto Finance News is a sister publication to Bank Automation News.

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By the end of the second quarter, Lendbuzz reached over 50% automation, compared with 30% at the end of 2024, Kalmar said.

“A lot of it is our frontline teams sitting together, collaborating and understanding what manual processes are done today and how you can automate them,” he said.

“There are a lot of different solutions and technologies that alleviate manual pain points,” — Amitay Kalmar, Lendbuzz CEO

Lendbuzz’s express contract tool, which digitally verifies and automatically approves auto loan applications using AI, has helped the Boston, Mass.-based lender strengthen its automation since launching April 23, Kalmar said.

As of this month, 50% of Lendbuzz’s loans are originated through express contract, he said, noting that “there is no human intervention in any way in the process.”

Lendbuzz was ranked the 51st-largest auto lender by originations at yearend 2024 with $1.5 billion in loan originations, according to the latest Big Wheels Rankings data.

Automating ‘low-hanging fruit’

Meanwhile, lenders are eyeing simple tasks and processes that can be automated, both internally and for customers.

U.S. Bank has used automations like optical character recognition, which converts images of text into machine-readable text, to streamline simple processes, Kristina Bolte, senior vice president of dealer services over national product and strategy, said during the webinar.

“Tasks that are repetitive, rule-based or highly predictable are much better candidates,” for automation —  Kristina Bolte, U.S. Bank

Meanwhile, PNC Bank has implemented self-service digital refinance and lease buyout tools for consumers and dealerships, Strati Papageorge, vice president of product at the lender, said during the webinar.

PNC is focusing on machine learning and “the originations journey,” he said, noting that it’s important to regularly experiment with new technology to minimize risk and avoid “making the experience worse for customers.”

“There’s plenty of data that’s generated out of any test-and-learn [process] or experiment that you might do,” Papageorge said. “Rely on the data and also use your gut around what types of things might go off the rails. Don’t let a lack of creativity work against you.”

Editor’s note: This article first appeared on Auto Finance News, a sister publication to Bank Automation News.

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