The US automotive industry has shown immediate interest in FICO's new auto finance loan origination solution. It was the big news drop at our Automotive Mastermind event held a few weeks ago in Silicon Valley and has been widely covered by industry media including Automotive News, Automotive Digest and SubPrime.
FICO's Alternative Deal Structures platform, designed specifically for automotive, works within lenders' parameters and customers' preferences to quickly produce multiple deal structure options at the point of sale from thousands of options in just seconds.
Automotive News reported:
"If you look at a typical auto finance scenario today, you might get a single deal structure offered by the underwriter [or] by the dealer, and the customer may or may not like it. If they don't like it or something unusual comes up, they have to go through the whole rehash process," Ken Kertz, senior director of FICO's auto practice, told Automotive News. "It takes hours and kind of tortures the customer in the dealership office. And what we're able to do is come up with a number of multiple deal structures in real time [and] optimize those real deal structures so that ultimately, the credit analyst can pass along the best three or four deal structures to the F&I manager, and the F&I manager can then pass on the best offer to the customer."
FICO is working with four of the largest indirect auto lenders in the US, with a number of others currently evaluating the technology. Competition in the auto market has been fierce as the number of cars being sold in America in 2017 continues to boom.
For more information read the media release: FICO Unveils New Solution to Instantly Optimize Deal Structures for Auto Finance
And watch the video on our FICO® Origination Solution for Automotive Finance