AUTOMOTIVE LENDING

Unlock and Accelerate Growth with Better Automotive Lending Decisions

Overview

FICO Auto Lending Overview

Automotive lending is a dynamic market. Economic fluctuations, government regulation, competition, interest rate dynamics all play a significant role in the profitability of auto lenders. The one constant is increasing complexity. Auto lenders need agile, business user friendly solutions that help them get consumers into the right car, quickly.

FICO delivers a holistic set of automotive solutions utilizing scores, predictive analytics and decision management technology, so auto lenders can acquire, retain and protect customers and portfolios. Most of the major captives, banks and independent auto and motorized finance firms including OEMs benefit from FICO solutions.

FICO also hosts the Auto Mastermind Group comprised of executives from the Auto Finance, OEM, Truck, Tractor, and Motorsports industries for a comprehensive session on best business practices and the latest innovations.

FICO Auto Lending Solutions

Pre-Delinquency Treatments

Understand when customers may be heading towards delinquency, and devise the right treatment strategies before it occurs. FICO Customer Management solutions are helping lenders reduce delinquencies by 20-25%, and help our clients to continual improve results.


Learn how auto lenders reduce delinquencies

Originations & Pricing

With increased competition and higher customer expectations agile originations and pricing platforms are vital. FICO solutions use the latest technology and deep analytic expertise to ensure business users can provide a wealth of pricing and loan structure options, at the right risk level, so satisfied consumers drive cars off the lot faster.


Learn about Alternative Deal Structures

Scores

The FICO® Score helps lenders make accurate, reliable and fast credit risk decisions across the customer lifecycle. With FICO® Score Open Access increase transparency by providing access to the actual FICO Scores you use to help make decisions directly to consumers. Strengthen customer loyalty and satisfaction by providing millions of dollars of value to your customers.


What is FICO® Score Open Access?

Collections & Recovery

FICO’s analytically-powered debt management software helps lenders manage early-stage delinquencies, boost recoveries, and collect more— quickly. Additionally, our optimization solutions can help auto lenders constantly update and match the right collection resources with the right accounts, to collect more at a lower cost.


Watch Collections & Recovery in Action

Model Management & Compliance

Increased regulatory activity requires tight model management, governance and validation. Pricing and approvals must be transparent and consistent to ensure fair lending. FICO delivers a suite of solutions to help provide analytic rigor, consistency, tracking and transparency in the auto lending process.


Learn how to improve model management

Account Management & Customer Retention

The hard work of winning a new customer often is not followed with steps to keep that customer satisfied, driving repeat business. FICO account management and loyalty solutions help lenders make the right decisions over the life of the relationship and provide the interactive, two-way communication solutions to deliver messages as consumers want them (SMS-text, e-mail, automated voice, print, etc.)

Customers

Customers

It's not just who we work with, it's how well we work together.

Auto Lending News

“What FICO brought was bringing our predictive analytics to the next level, which involves micro-segmentation and combining multiple models to get one result,” Bander tells Datanami. “It involves action-effect modeling, which allowed us to figure out, when we take an action, what are the individual customer microsegments likely to do in response to that action."

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Customer Evidence

Wayne Orchowski

Chief Operating Officer, BMW

“Using FICO Customer Communication Services, we get a secure, highly flexible, robust solution with a low cost of entry, and we can leverage the expertise of a valued partner, which allows our in-house maintenance support to focus on other key internal priorities and platforms.”

Read BMW Case Study

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Auto Company Drives Profitability Through Real-Time Alternative Deal Structuring

 

When car dealerships have interested customers who are ready to purchase vehicles, nothing is more frustrating than struggling to structure the right deals—ones that maximize profitability, fit the risk parameters of the lender and satisfy buyers. This was the challenge for a large auto finance company, which was forced to reject too many prospective buyers who could have been profitably financed if the deals had been structured properly.

The company wanted to ensure that the maximum number of customers walked out the doors of its dealerships with deals in hand. However, its credit analysts generated too many credit exceptions, which reduced profitability. That practice also created inconsistencies among individual dealerships, reducing risk manager monitoring effectiveness and putting the company at risk of predatory lending practice accusations.

 

Read Complete Case Study