Wolters Kluwer’s Digital Transformation Index shows the auto finance industry’s adoption of digital workflows ticked down by 2.3% from the second quarter but improved by 4.3% year-over-year.

Analysts noted the quarter-to-quarter dip reflects a corresponding slowdown in new vehicle sales and the long-term econtracting adoption rate continues to accelerate, increasing by 88.5% from Q3 2021 to Q3 2025.

In a release, Wolters Kluwer’s Matthew Babcock urges the industry to “digitally ‘bulletproof’” the financing process.

“The Q3 data clearly shows that while econtracting is maturing, the next major frontier for digital transformation continues to be in the back office, particularly within the securitization workflow,” Babcock writes. “In a climate where subprime performance is heavily scrutinized and institutional participation is expanding, operational efficiency is paramount. To unlock this growth, the industry must tackle the most critical risk areas in the back office.”

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