loan origination software for banks

WHY THE BPO VALUE PROPOSITION MATTERS MORE THAN EVER FOR AUTO LENDERS

The defi Team Automation, Business Process Outsourcing, Compliance, defi INSIGHT, Digitalization, Loan Management, Remarketing, Reporting & Analytics, Servicing Systems, Simplifying Processes, Technology

loan origination software for banks

A growing number of auto lenders are seriously evaluating business process outsourcing (BPO) services. The primary BPO value propositions are improved process efficiency and lower costs for lease and loan servicing activities compared to managing these in-house. These benefits result from BPO providers’ investments in automation technologies and the experience gained by providing these services to hundreds of auto lenders—banks, credit unions, and fincos. 

Successful, long-established BPO providers have the financial resources to upgrade their IT infrastructures regularly, quickly adopt innovative technologies, and continually enhance their lease and loan servicing systems. They also have the breadth and depth of experienced staff to handle the most complex servicing issues efficiently. Very few auto lenders have the financial resources to continually make this level of investment to create and maintain the systems and staffing that provide this level of efficiency and expertise. That’s one of the key reasons why the BPO value proposition matters more than ever for auto lenders. 

When reviewing the BPO value proposition of any provider, it’s essential to look not only at efficiency and cost savings that can be attained, but also the range of services and the quality of customer care.

BPO Value Proposition: Look For Flexibility 

The best BPO providers for lease and loan servicing will allow you to select from a range of services and tailor the services to your specific needs. It shouldn’t be an all-or-nothing arrangement. Throughout your relationship, you should be able to expand the services as needed easily. For example, start with call center support, expand to lead generation, then to payment processing and collections. Scaling the services and staffing up or down to correspond to changing economic conditions should be just as easy. 

Flexibility is a crucial part of the BPO value proposition. Look for a provider who has proven lending industry experience and thoroughly understands how changing economic conditions and regulations can impact lease and loan management. 

BPO Value Proposition: Enhanced Borrower Experience

Equally important to the BPO value proposition is the borrower’s experience. The technologies that enable greater process efficiency in lease and loan management should also deliver an experience that meets the expectations of today’s borrowers. Two capabilities in particular—interactive voice recognition and mobile self-service—offered by a BPO provider can significantly enhance the borrower’s experience. 

Interactive voice recognition (IVR) capabilities can support borrower self-service and optimize interactions with call center agents. IVR simulates human conversation through voice or text commands to help determine how to best direct or answer a borrower’s inquiry. IVR facilitates immediate access to a borrower’s account information to help answer questions for quick and accurate resolution. A callback option keeps a caller’s position in the queue without being on hold. Borrowers can even coordinate anytime, anywhere payments without the need for agent interaction. 

Mobile self-service capabilities give borrowers greater control over their accounts. With a mobile application, borrowers can set up ACH enrollment, access a complete record of their payment history, confirm a payment has been made, calculate the current payoff amount, and update contact information. Mobile self-service capabilities provide secure access to relevant account information, enhance lease and loan management efficiency, and boost borrower satisfaction. 

The Value Of Business Process Outsourcing Services 

Auto lenders realize they can achieve better results when they focus their efforts on core business activities and delegate non-core responsibilities to providers who are much better equipped to deliver services more efficiently and cost-effectively. 

The BPO value proposition should add more value than just greater efficiency and cost reduction. Understanding how BPOs achieve these goals is important in selecting the best BPO provider for your needs. When evaluating BPO providers for lease and loan management services, ask about industry experience, range of services, and flexibility in creating a BPO plan that meets your specific requirements. Determine how extensively a provider employs automation such as IVR, workflow, and decision rules to enhance process efficiency to deliver the expected level of support services. Verify that controls are built into their systems to ensure compliance with federal and state regulations. The best BPO providers also use analytics and reporting to monitor performance to ensure they are meeting your service level agreements. 

The adoption of business process outsourcing by an ever-increasing number of auto lenders confirms the value of these services. For many auto lenders, it’s the fastest way to growth and higher profitability.

Getting Started

defi SOLUTIONS provides a wide range of technology-enabled BPO services, as well as configurable lease or loan origination systems, loan management and servicing, analytics, and reporting. With more than three decades of experience in developing, delivering, and supporting lease and loan solutions, we fully understand your lending needs. If you’re looking for greater efficiency in managing leases and loans, take the first step in realizing the benefits of working with an experienced BPO provider. Contact our team today.

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