loan servicing software community bank small business

WHY A SINGLE SOURCE BPO IS THE BEST CHOICE FOR AUTO LENDERS

The defi Team Automation, Business Process Outsourcing, defi INSIGHT, Simplifying Processes

loan servicing software community bank small business

Choosing an outsourcing partner is one of the most crucial business decisions auto lenders can make. Once the decision is made, lenders are confronted with selecting either a single source BPO or multiple partners. 

Single sourcing has become a widely adopted option as it has many advantages. These benefits result from BPO providers’ investments in automation technologies that few auto lenders can make independently, plus the experience gained by providing these services to hundreds of auto lenders, banks, credit unions, and fincos.

Below, we explore the benefits and top reasons auto lenders should opt for a single source BPO.

#1 Build and Maintain a Strong Relationship

Choosing a single source BPO over multiple partners makes it much easier to develop a working relationship. Managing a successful auto lending business is difficult enough without relying on two or more partners to get things done. Trust can be built quickly, and your needs can be better accommodated when communicating with just one party. In addition, one relationship makes it easier to manage provider performance and to track down the source of any issues should they arise.

#2 Reduce Costs While Improving Efficiency

When making a move to a business process outsourcer, you’re likely to see a reduction in capital and operational costs. Many auto lenders opt for a BPO provider because of the cost savings alone. A single source BPO model can reduce costs as everything is executed by one provider, thus cutting down additional charges from outsourcing to multiple groups. 

In addition, multi-sourcing adds the pressure of paying each partner individually as pricing may differ with each service provider. This hinders lenders’ ability to leverage better economies of scale and offer a competitive loan offer, potentially resulting in fewer borrowers.

Having a sole contact also ensures that everyone understands each other’s roles and responsibilities and will be better equipped to deal with unexpected problems.

#3 Enhance the Borrower Experience and Improve Retention Rates

The technologies that enable greater process efficiency in lease and loan management deliver an experience that meets the expectations of today’s borrowers. An expert single source BPO provider builds compliant white-label solutions with sophisticated technology to optimize customer service. Some of these systems include:

  • Multi-channel customer communications
  • Customer relationship management (CRM)
  • Self-service applications
  • Welcome calls and inbound fulfillment

Enabling your business to speed up its transactions with quality service keeps customers coming back, as 86% of consumers say that excellent customer service turns one-time clients into long-term customers.

#4 Boost Brand Reputation With a Respected Single Source BPO Partner

Single sourcing may present the opportunity to enhance your brand’s reputation in another way. Choosing a trusted, well-known single source BPO partner can emphasize to your customers your business’s commitment to providing exceptional end-to-end quality. 81% of consumers say they need to trust the company before working with them, and with critical services involving financing, auto lenders must ensure that borrowers are in the right hands. 

By opting for a single source BPO provider, you not only reduce expenses and increase efficiency in end-to-end auto lending services, but you’ll also be able to focus in-house resources on your core competencies. If you’re still wondering whether single-sourcing is suitable for you, now may be the right time to consult with an established business process outsourcing provider to explore the advantages further.

Getting Started

defi SOLUTIONS provides configurable lease or loan origination systems, loan management, servicing, analytics and reporting, and a wide range of white-label business process outsourcing services. We have been helping auto lenders for over 30 years with proven processes that improve lease and loan servicing efficiency. All our offerings are tailored to the needs of finance companies, credit unions, captive lenders, national banks, regional banks, and lending start-ups. Contact our team today or register for a demo.

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