The Advantages of Implementing Electronic Contracts in Auto Finance
Järvelä, Emilia (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021053112785
https://urn.fi/URN:NBN:fi:amk-2021053112785
Tiivistelmä
Hire-purchase agreements are prevalent in car sales in today’s market. Over half of the consumers choose to purchase a car by consumer credit. The purpose of the auto finance companies is to provide an effortless process for the hire-purchase agreements. These contracts can be created by paper or using an electronic contract. Electronic contracts are becoming more popular in the industry considering the accelerated usage of online banking and the technology development of e-signing.
This research studied the advantages of implementing DNB Auto Finances electronic contract solution in the auto finance industry. The case company understood before the study was conducted that there are advantages when implementing the electronic contract. Electronic contracts were already widely used by their customers. They expressed that they would want to have more data on the advantages of electronic hire-purchase agreements because it could benefit the car dealers and the case company.
Hence business process management and contract management are an important part of the auto finance industry it is crucial to recognise the advantages that electronic contract can deliver. According to the case company’s preferences, the focus was on the advantages of digitalising a paper-based contract process to the car dealers.
This thesis was conducted through quantitative and qualitative research. The research started in August 2020 with a meeting with the case company representative. During winter 2021, the relevant theory on background, business process management, digitalisation of business process and digital contract management was gathered. The research included various studies of these topics. Based on the theory gathered, DNB Auto Finance provided quantitative data on the contracts to expand the research. This data and theory outlined the qualitative research that were interviews conducted with car dealers. Outlining the paper and electronic contract process was the target data.
The data gathered from the case company and interviews were analysed with process modelling and cost-benefit analysis. The analysis showed that there were multiple advantages when changing from a paper-based process to an electronic one. The advantages were financial, legal, and environmental. The theory supported that there are advantages in the digitalisation of a process, especially financial benefits. The case company should focus on electronic contracts and develop the process in a way that the car dealers could benefit from it even further.
This research studied the advantages of implementing DNB Auto Finances electronic contract solution in the auto finance industry. The case company understood before the study was conducted that there are advantages when implementing the electronic contract. Electronic contracts were already widely used by their customers. They expressed that they would want to have more data on the advantages of electronic hire-purchase agreements because it could benefit the car dealers and the case company.
Hence business process management and contract management are an important part of the auto finance industry it is crucial to recognise the advantages that electronic contract can deliver. According to the case company’s preferences, the focus was on the advantages of digitalising a paper-based contract process to the car dealers.
This thesis was conducted through quantitative and qualitative research. The research started in August 2020 with a meeting with the case company representative. During winter 2021, the relevant theory on background, business process management, digitalisation of business process and digital contract management was gathered. The research included various studies of these topics. Based on the theory gathered, DNB Auto Finance provided quantitative data on the contracts to expand the research. This data and theory outlined the qualitative research that were interviews conducted with car dealers. Outlining the paper and electronic contract process was the target data.
The data gathered from the case company and interviews were analysed with process modelling and cost-benefit analysis. The analysis showed that there were multiple advantages when changing from a paper-based process to an electronic one. The advantages were financial, legal, and environmental. The theory supported that there are advantages in the digitalisation of a process, especially financial benefits. The case company should focus on electronic contracts and develop the process in a way that the car dealers could benefit from it even further.