Why CROs are Embracing Digital Auditing Tools: A Look at the Benefits of Digital Inventory Auditing

For those responsible for risk management, one of the primary responsibilities is to identify, assess, and manage the risks to which the bank is exposed. This includes ensuring that the bank’s overall risk management strategy is aligned with the bank’s business objectives and regulatory requirements.

For automotive floorplan funders, having accurate inventory information is key, but often time-consuming to obtain data and infrequent. One way to achieve up-to-date and more regular data on an automotive dealer customer’s inventory position is to use a digital self-auditing tool.

A digital audit tool that allows for self-audits has several benefits that can appeal to CROs.

Increased Efficiency & Frequency: A self-audit tool allows dealers to perform audits independently without needing bank auditors to physically visit the dealership. This can save time and resources for both the funder and the dealership, allowing the risk team to focus on other important tasks.

Improved Data Quality: Self-audits performed by dealers can provide more accurate and up-to-date information than traditional audits due to the ease of auditing, which makes more frequent stock checks possible, along with the speed of data consolidation. This can give the CRO more accurate intelligence to inform business decision-making.

Better Risk Management: The tool provides real-time data and validates across multiple sources, which helps the CRO to identify issues more rapidly, resulting in improved risk management and greater control over the funder’s risk exposure.

Cost Savings: Remote audits performed through a digital tool reduces the need for travel, saving time, fuel cost, and vehicle emissions. This can result in significant benefits for the funder.

Compliance: A digital audit tool that is easy to use and well-received by dealers can help ensure compliance with regulatory requirements related to risk management, giving more reliable and timely data.

Continual Risk Profile: Self-audit tool allows the CRO to have a continual risk profile for a dealer, which can be a perfect complement to the physical audit team.

Better Lending: With better information and efficient management, a digital self-audit tool can grow wholesale lending by supporting increased funding lines to the right dealers, improved returns, and reduced/controlled risk.

A digital audit tool that allows automotive dealer customers to self-audit can be a valuable asset for automotive floorplan funders. It offers a variety of benefits, such as increased efficiency, improved data quality, better risk management, cost savings, compliance, a continual risk profile, and better lending.

By upgrading to a digital solution, CROs can improve their risk management strategies, turn better risk management into a competitive advantage over peers using outdated processes, make better business decisions, and stay compliant with regulatory requirements.

If you’re interested in seeing how CheckVentory’s Digital Audit tool can benefit your organization, we’d love to give you a demo.

Contact us today to schedule a time to see the tool in action and discover how it can help your business stay ahead of the curve in automotive funding risk management.