Drive informed lending decisions
On the winding road to recovery, the auto industry has steered around some of its most critical hazards ever. These have included industry consolidations, high default and repossession rates, government bail-outs, double-digit sales dips, and high fuel prices.
Now, the auto industry is poised for recovery and growth. Both captive and non-captive auto finance lenders are rethinking acquisitions strategies and customer finance programs. However, these activities, are tempered by a cautious approach to credit evaluation and a need for highly predictive tools for risk assessment. FICO offers new innovations for auto lending that will responsibly grow auto loan portfolios.
Shifting to streamlined processes
The auto lending space has always been highly competitive and is now shifting into high gear with new models and reformatted leasing programs coming to market. Competition for car buyers will be intense as dealers vie for low-risk buyers, ready to purchase after several years of delay. Those lenders who have traditionally focused on non-prime will especially need the best analytics for early stage delinquency detection to protect their business models.
In all cases, systems and tools that help streamline processes, improve efficiencies, and drive down operations costs will be in high demand. Any capability that drives a competitive edge will be highly valued. FICO is well positioned to lead these improvements with easily implemented and flexible rules-based solutions, integrated with financial decisioning solutions.
Analytics steer better decisions
From the initial score pull to the final payment, FICO’s comprehensive program of auto finance growth solutions can help you:
- Prioritize customer segments for outreach and promotion (Non-captives).
- Improve originations decisions with finely honed risk analytics tuned to the auto industry.
- Assess both risk and the ability to pay for greatest profitability.
- Automate products promotion strategies that both maximize acceptance and enhance portfolio Net Present Value (NPV).
- Target only regional opportunities for growth to help mitigate the risk of expanding the credit portfolio.
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