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Solving the Labor Shortage in the Titling and Banking Industries
DDI Technology’s Perspectives section features short articles on technologies and services designed to help financial institutions and automotive dealers increase efficiencies, reduce costs, and improve their customer service.
Not unlike other sectors of the economy, the titling and banking industries are having a difficult time finding enough qualified employees to meet the needs of their customers and their businesses.
According to American Banker, the labor shortages suffered by the financial services industry were exacerbated by the pandemic but have been years in the making. In addition to workers simply retiring or leaving the industry altogether, many have moved into fintech and other booming sectors. The increased availability of remote work gives employees more opportunities to move outside the industry.
No matter the reason, when experienced employees leave, finding and retaining qualified, knowledgeable workers to take their place has become extremely challenging. One issue is the complexity of both industries. Finding the right level of expertise over a wide range of jurisdictions, with an understanding of local titling and banking laws, is a tall order.
The high demand for labor and the shortage of qualified workers is causing some lenders and dealerships to operate understaffed. In turn, this is causing employees to work longer hours, increasing worker exhaustion, delays, mistakes, burnout and turnover, while reducing employee and customer satisfaction. When financial and titling businesses find a qualified prospective employee, they are forced to offer more in the way of compensation and benefits. Hiring new employees can be a costly proposition.
Consider Outsourcing Non-Core Operations
So how can titling and banking firms find and hire the well-qualified employees they so desperately need? A great option to consider is outsourcing non-core operations to a trusted, vetted service and solution provider with demonstrated expertise in the field.
Why is outsourcing a good choice? First, it solves the labor shortage by providing experienced, knowledgeable professionals that do not have to be trained and have no learning curve. This saves time, money and effort. It also eliminates mistakes, as well as other costs associated with employees, including office space, desks, computers and related equipment.
An outsourced provider can help streamline your title and lien release management, and eliminate the hassles associated with total-loss transactions. These are all labor-intensive, time-consuming tasks that require significant knowledge, experience and technological knowhow to get right. The best providers can also give banking and titling firms the ability to view, track and maintain their entire registration portfolio.
Moreover, because outsource partners have the capacity to flex with volume swings, titling and banking firms can save money. There is no need to hire full-time employees to handle seasonal swings in volume. This converts a fixed cost to a variable cost. Finally, some outsource providers can convert manual, paper-based processes to digital processes, requiring fewer people to complete the same workload. This saves even more money.
The option to outsource relies on having an excellent service provider who understands the needs of the titling and banking industries. The service provider should also have the technology and processes required for a seamless transition.
DDI Technology, a national service provider and subsidiary of IAA, offers financial institutions and automotive dealers a suite of automotive title/registration management and total-loss transaction technologies that deliver efficiencies, reduce costs, and enable superior customer service.
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