Many auto lenders seek out loan outsourcing companies to improve efficiency, reduce overhead, and scale their lending operations. It’s become the preferred strategy for those who once managed these activities in-house but discovered a more effective method.
In an industry survey, 59% of companies cited loan outsourcing services as a cost-cutting tool, 57% said it enables them to focus on their core business, and 47% said it gave them the ability to solve capacity issues. With these statistics in mind, it’s easy to see why auto lenders are switching.
The first step towards this transformation is to choose the most advantageous provider, but which loan outsourcing companies are worth considering? By comparing your options, you can discover which company offers various services with a proven track record of success and no unsuspected pitfalls.
Let’s begin by exploring some of the value propositions all auto lenders should look for when comparing loan outsourcing companies.
|What Auto Lenders Should Look For In Loan Outsourcing Companies|
|Expertise to Meet Demand||Expert loan outsourcing companies have the physical, technical, and staffing resources to accommodate business demand easily. Additionally, they streamline processes to improve your business’s workflow.|
|Resources to Increase Efficiency||Top loan outsourcing companies have the staff, technology, and processes to facilitate much higher efficiency. These resources include digital solutions that reduce manual tasks, highly trained support staff, and innovative technology that’s updated.|
|Partnership-based Approach||Dedicated loan outsourcing companies approach each client as a partner. A flexible attitude towards business objectives and equal effort toward conflict resolution should be adopted as the relationship matures.|
Loan Outsourcing Companies Have the Expertise to Meet Demand
Established expert loan outsourcing companies have the physical, technical, and staffing resources to accommodate business operations efficiently. Whether it’s changing lease and loan volumes, increased delinquencies, or a significant influx in customer support demands, loan outsourcing companies have the skills to manage any situation that arises. Better yet, they take control and streamline these processes for an improved and smooth workflow in your business.
It won’t matter how many wonderful services a company advertises or how many guarantees they make to customers if they don’t have the skills to follow through. Unfortunately, many businesses fail to live up to their claims about their fluency in the industry, leaving customers unsatisfied and frustrated with the time and money they may have spent.
Fortunately, some loan outsourcing companies have the skills and expertise with an established track record and reputation to prove it, such as defi SOLUTIONS. There is no second-guessing whether you’ve made the right decision with a company with thirty years of experience, an ISO certification, and an unparalleled reputation for helping thousands of lenders realize their business goals.
Resources to Increase Efficiency
Another critical aspect auto lenders should look for when comparing loan outsourcing companies is the number of resources they can access. The idea of connecting with a third-party provider is to gain assistance with your operations, improve workflow and productivity, and scale your business—all at a reasonable cost. Top loan outsourcing companies have the staff, technology, and processes to facilitate much higher efficiency. Some examples of these resources include:
- Digital solutions that reduce manual tasks for lenders and borrowers alike.
- Highly trained, multilingual support staff.
- Innovative, forward-thinking technology that’s consistently upgraded.
A majority of auto lenders cannot attain these costly resources in-house. The IT infrastructures and other technologies requiring regular maintenance and upgrades become a much more significant investment than the initial purchase. That’s why finding a loan outsourcing partner that can make these investments is imperative, giving you access without increasing expenses.
However, an auto lender’s sought-after resources should be innovative and forward-thinking. If you want a competitive advantage, you need a business partner who looks towards the future. For example, defi SOLUTIONS uses cloud-based systems combined with their servicing software (used by some of the largest U.S. lenders) to service auto loans, leases, and borrowers on numerous levels. They’re consistently evolving with the needs and expectations of today’s customers.
A Partnership-Based Approach
If you contact loan outsourcing companies that do not operate with a partnership-based approach, run the other way. This is your business. You may need assistance, but that does not mean you should give your provider unfettered reign. Unfortunately, countless companies take this approach.
The partnership-based approach is when the provider plays the role of a strategic partner. Both parties adopt a flexible attitude towards business objectives as the relationship matures and make equal efforts toward conflict resolution.
Both you and your provider of choice should remain independent, but you will share the benefits, risks, and control over joint actions. As an auto lender, your goal is to acquire new capabilities with your existing business, and the provider’s goal is to make that happen.
Making the Decision
Choosing a loan outsourcing company doesn’t have to be an extensive process. A loan outsourcing business partner promises value to be delivered, communicated, and acknowledged. As an auto lender and the customer, you believe in how value will be delivered, experienced, and acquired.
A single, experienced provider focusing exclusively on the lending industry can be the fastest way to improve internal operations and grow your business. When evaluating and comparing loan outsourcing companies, choose the one that offers auto lenders transparency and premium services without any pitfalls.
If you are looking for an industry-leading loan outsourcing company that offers professional, white-glove service, look no further than defi SOLUTIONS. Our defi MANAGED SERVICING provides a single hub, digital interactions, and intelligent virtual assistants to bring everything together.
With defi MANAGED SERVICES, you can ramp up a new or beef up your existing loan servicing operation with white-label, outsourcing services for:
- Inbound call handling and fulfillment.
- Return mail processing.
- Payment processing.
- Collateral management title work.
- Cash management.
- Back-office payment processing.
- Default management (collections, bankruptcy, repossessions, recovery).
- Lease maturity management.
defi MANAGED SERVICING uses artificial intelligence (AI) and Contact Center as a Service to boost operations and processes related to auto loans, leases, and leased vehicle dispositions, reducing budgetary expenses and improving customer service.
defi SOLUTIONS is redefining loan outsourcing with end-to-end software solutions that enable lenders to automate, streamline, and deliver. Borrowers want a quick turnaround on their loan applications, and lenders want quick decisions that satisfy borrowers and hold up under scrutiny. With defi MANAGED SERVICING, lenders can improve operations and processes related to auto loan servicing, leases, and the disposition of leased vehicles, cutting expenses through automation and outsourcing services. For more information on what to look for when considering loan servicing companies and how we can help, Contact our team today and learn how our cloud-based loan origination products can transform your business.