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BUSINESS PROCESS OUTSOURCING: BEST PRACTICES AND GUIDANCE FOR AUTO LENDERS

The defi Team auto loan origination software, Automation, Business Process Outsourcing, defi INSIGHT, Digitalization, Technology

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Business process outsourcing (BPO) is a popular option for auto lenders, and more are turning to it as a cost-cutting measure. Before deciding on an outsourcing partner, it is essential to consider what you hope to gain from the partnership and how the integration process will unfold. The technical details of business process outsourcing extend far beyond the basics of one company hiring another to cut costs.

Although outsourcing can be handled in various ways depending on the lender, there are several business process outsourcing best practices that you can apply to ensure seamless execution.

Business Process Outsourcing Best Practices for Auto Lenders in 3 Steps

The transition to outsourcing is the beginning of a new chapter for your business inspired by growth and change. There may be feelings of uncertainty when establishing a partnership, but auto lenders will find that a partnership with the right BPO provider emanates opportunity.

Implementation is ultimately the defining moment in the lender-provider connection. These best practices will give you the guidance needed to enable a faultless integration.

#1: Map Out Goals Ahead of Time

If you are not sure what you want from partnering with a third-party provider, it is recommended to begin building a working relationship by identifying your future goals. Of course, the initial thought is to organize and improve your business processes and end the fiscal year with a profit. But it should go much deeper than that.

Consider mapping out specific objectives and goals. Putting them on a timeline can be of great help too. However, creating an outline is not a one-sided endeavor. The initial consultation with the provider should revolve around your business’s unique needs and which services can help.

When presenting these goals to the provider, it is best practice to ensure an effortless alignment. Choosing a single source BPO that is flexible and focused on your business makes for a great beginning.

Tip: When presenting goals, consider asking your potential provider the following questions.

  • What is the experience level of your staff?
  • What service management systems are in place?
  • To what degree is process automation used? 
  • Do you maintain service performance metrics?

#2: Keep Quality at the Forefront of Your Considerations

Business process outsourcing is only good if the services being delivered are of high quality. The provider you choose should meet your standards and expectations. Otherwise, the entire process results in dissatisfaction.

The best tip to give is to focus only on a partner with industry expertise. Outsourcing companies that focus on unique industries tend to offer a broader set of services and have a deeper understanding of the lender’s needs and their clients. For example, defi SOLUTIONS has been specializing in the lending industry for over 30 years. We focus on every process auto lenders could need to outsource, some of which include:

Outside of BPO services, defi also offers reports to help you stay informed on your loan portfolio performance. 

#3: Take Your Time Implementing Strategies

It is not necessary to go “all in” when outsourcing your processes. If you are hesitant about the experience, expand what you outsource slowly. A BPO provider with your best interest in mind will offer guidance in a step-by-step approach before implementing a large-scale strategy. This allows you to adjust and scale up or back as needed.

You may find that many providers offer a fixed-priced package for their services. Since one of the top reasons auto lenders outsource is to reduce overhead, it is best to let a flexible provider assist you. Instead of offering fixed-priced packages, defi gives auto lenders the option to select one or all services or customize a bundle depending on requisites and budgets.

Making the Outsourcing Process Simple

The benefits of professional BPO services are evident when the above business process outsourcing best practices are utilized. A partnership focused on emulating your cultural identity as a lender, with solid processes as a foundation, is a great start to an ideal partnership.

When you find someone that delivers on their promises, meets your standards, and communicates effectively, you have the confidence and composure of a smooth, auspicious outsourcing process.

Getting Started

defi SOLUTIONS is a market-leading business process outsourcing provider helping auto lenders drive improvement and growth for over 30 years. Our team helps connect the dots between insight and action in a simple, seamless partnership, enabling the opportunity for transformational change. Contact our team today or register for a demo.

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