For lenders, accepting electronic payments for auto loans isn’t just expected. It’s a huge component in a great business model. Start-up subprime auto lender Arivo Acceptance recognized this from the get go. With a focus on providing innovative services and simple, transparent, and fair auto loan solutions, Arivo was eager to offer advanced technology solutions to automate its servicing department and enable it to receive and process electronic payments. Arivo needed the solution they chose to integrate with both the defi SOLUTIONS loan origination system (defi LOS) and loan management software and servicing system (defi SERVICING) to solve some of their toughest challenges:
AUL vehicle service contracts—also known as extended warranties—offer a unique opportunity for auto finance providers to positively impact portfolio performance and overall profitability in many ways. Rarely can a single product or program have such a dramatic impact on multiple core finance operations, but AUL can and does, and that’s exactly what makes AUL the trusted partner of more than 70 auto finance providers across the nation.
Here’s just a few ways a successful AUL service contract program can work for you:
Many flagship credit scoring models are created by sampling a population that represents the spectrum of credit risk within the entire US population. This strategy can work well for lenders with a nationwide footprint. However, lenders that do business in select regions can have significant aberrations in the performance of their model if the model does not consider attributes that account for regional variations.
Change is afoot. Maybe it’s the shifting finance patterns of the Millennial generation that’s causing the fuss, or simple adjustments to consumer buying habits. Regardless, the fact is this: Changes in the way people buy cars and get them financed are impacting both dealers and lenders. These consumer-driven demands for faster, more efficient and personal transactions are causing deep waves of change throughout the entire industry.
“An approximate answer to the right problem is worth a good deal more than an exact answer to an approximate problem.” – John Tukey
Do you wonder if your credit model could be better if it was refit? Knowing when and if to commit to the time and expense of a full model rebuild challenges many lenders. But according to defi SOLUTIONS partner Digital Matrix Systems (DMS), there is an easy solution.
Feeling the pain of compliance letters?
defi SOLUTIONS has a cure!
Joining with new defi Integration Partner CEDAR Document Technologies, we’re making it easier for lenders to remain compliant while reducing the time and money they spend on mailing adverse action letters.
We’re bringing automation to an outdated process that has plagued auto lenders for far too long.
Ideally, your loan origination platform is more than just a channel for processing loan applications. It should be a tool that enriches your decisioning process and helps you make educated decisions about borrowers and their loan applications. The defi SOLUTIONS LOS is that tool and more.
The defi LOS connects you to the information you need through pre-integration with more than 35 of the industry’s leading third-party data sources. These sources allow auto finance companies and other lenders to seamlessly integrate a borrower's finances, credit, identity, and other valuable insights into the decisioning process.
This past week our CEO Stephanie Alsbrooks joined with Intellaegis President John Lewis in an informational discussion of upcoming CFPB regulations that will take effect in 2017.
The discussion, moderated by Intellaegis Chairman of the Board Mark Floyd (former Exeter CEO, former AmeriCredit COO), addressed compliance challenges and the growing importance of technology in helping lenders tackle and resolve related issues.