Wells Fargo Auto is hoping to increase automation within its loan approval process by investing in the company’s origination system and credit decision tools.

Auto lenders are investing in technology as more customers view and buy cars online. Wells Fargo’s goal is to up decision automation to more than 70% by 2022, from 59% in 2020, “enhancing the customer experience while improving controls,” Mike Santomassimo, chief financial officer, said Friday on the fourth-quarter earnings call.

Wells Fargo Auto had $5.3 billion in originations in the fourth quarter, a decrease of 22% from the same period in 2019, Santomassimo said, adding that the lender has tightened credit standards due to continued uncertainty surrounding the COVID-19 pandemic. Wells Fargo had $48.2 billion in auto outstandings as of the fourth quarter, an increase of less than 1% year over year.

Meanwhile, auto loans 30-plus days past due clocked in at 1.77%, a decrease of 79 basis points from a year ago. The net charge-off rate for auto loans also decreased 30 bps YoY to 0.43%.

Loan performance remains propped up by pandemic-related stimulus and payment assistance, Santomassimo noted. As of Dec. 31, $1.9 billion in Wells Fargo auto loans remained in deferral, or 4% of the total auto portfolio, a decrease from 6% last quarter and 10% at the end of June, according to the earnings presentation.

Of loans that have exited a deferral program, 90% of the balances are current as of the end of the year in 2020, Santomassimo noted.

Still, Wells Fargo continues to build its allowance for credit losses due to the pandemic, with auto loan allowance reaching $1.2 billion in the fourth quarter, or 2.55% of total auto outstandings. Across Wells Fargo’s entire portfolio, ACL increased to $19.7 billion, or 2.22% of total outstandings, from $10.5 billion a year ago.

“The negative impact to our results from COVID is clear and will likely continue until broad-based vaccinations allow for clear and even economic recovery,” Chief Executive Charles Scharf said on the earnings call. “We’re taking action for things in our control, but we’ll remain cautious until there’s more clarity around when these constraints will recede.”

Shares of Wells Fargo & Co [NYSE: WFC] were trading at $32.98, up 2.98% as of 1:57 p.m. Wells Fargo has a market capitalization of $136.3 billion.

This story first appeared on Auto Finance News.