Many auto lenders across the US have hit the wall while attempting to streamline their auto loan servicing operations. Certainly, the challenges of 2020 have put this issue in focus as borrowers’ requests for guidance and deferrals increased well beyond the ability of many lenders to efficiently handle the demand. Some lenders address these issues with investments in upgraded systems and hire additional staff, but those aren’t necessarily “quick fixes.” Upgrades to legacy lending systems can be protracted. Depending on the lender’s location, finding employees with the right skills can be a daunting task.
An increasing number of auto lenders are meeting these challenges and streamlining loan servicing operations through outsourcing. They realize that outsourcing gives them the flexibility to determine which portions of loan servicing operations they want to outsource and smoothly make the transition. Loan servicing covers a wide range of activities and tasks, including: providing welcome calls that educate new borrowers, managing payments, closing out leases, and handling the complexities associated with repossessions.
Key Capabilities That Convince Lenders That Lease and Loan Servicing Operations Should Be Outsourced
As a leading outsourcing provider of auto lease and loan servicing throughout the US, we’ve created a quick checklist of lease and loan servicing categories and key capabilities. It’s not a complete list, but it explains how these capabilities streamline operations and offer a higher level of service while reducing costs compared to handling loan servicing in-house. As you read through the categories and lists of capabilities, compare them to your current in-house auto lease and loan servicing operations.
Call Center: More Hours, More Languages, Higher Borrower Satisfaction
- Welcome calls to new borrowers set expectations regarding their loan or lease and answer any outstanding questions. These calls help reduce problems throughout the auto loan servicing cycle.
- Extended hours, including evenings, weekends, and even 24/7 if required, make it easier for borrowers to contact you to have their questions answered.
- Multilingual call center representatives explain lease and loan details to borrowers whose native language is not English.
Cash Management: Support All Payment Options, Prompt Account Reconciliation
- Offer payment processing via lockbox management, ACH, in-house payments, convenience checks, and balance transfers.
- Prompt reconciliation to ensure representatives and borrowers have accurate account information.
- Conduct payment research to resolve rejected and suspended items.
- Workflows guide account payoff processing for speed and consistency.
Collections: Proficient and Compliant
- Predictive analytics identifies accounts likely to default and initiates calls to proactively prevent defaults.
- A proven multi-tiered process based on the delinquency stage applies collection treatment plans to maximize returns.
- Track and manage delinquent accounts using specific decision rules within carefully defined workflows.
- Automation eliminates manual collection process steps for increased efficiency and lower compliance risks.
- Automated electronic notifications regarding bankruptcy filings.
- Trained recovery specialists follow regulatory guidelines and utilize a compliance management system that addresses Consumer Financial Protection Bureau (CFPB) requirements.
Remarketing: Efficiencies to Maximize Resale Value
- Experienced industry professionals are focused on quick vehicle resale.
- Nationwide title network and established relationships with state DMVs and title service companies facilitate fast title acquisition.
- Rapid vehicle transportation to auctions minimizes vehicle storage costs.
- Resale volumes and economies of scale help reduce transportation costs, sales fees, repair costs, and auction expenses.
- Integration with AutoIMS provides accurate, current data, condition reports, and photos as vehicles progress through the remarketing lifecycle.
- Quality assurance program monitors auction sales and remarketing efficiency to ensure the maximum vehicle resale value.
The Value of an Experienced Provider for Auto Loan Servicing
If there’s any category above where you fall short, that may be the ideal first step in moving to an outsourced solution for servicing. If you find you’re lacking in several categories, that’s all the more reason to engage with an experienced auto lease and loan servicing provider today. You’ll streamline all aspects of loan servicing, reduce operational costs, and deliver a higher level of borrower service that helps distinguish you from your competition.
defi SOLUTIONS provides software solutions for lease and loan origination, servicing, reporting, analytics, and a wide range of innovative, technology-enabled BPO services. For more than thirty years, we’ve been developing, deploying, and supporting solutions and services tailored to the needs of captive lenders, finance companies, credit unions, regional banks, and lending start-ups. Contact our team today to learn how outsourcing can streamline loan servicing operations.