Choosing a loan 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 loan outsourcing provider or multiple partners.
Single sourcing has become a widely adopted option as it has many advantages. These benefits result from loan outsourcing 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 loan outsourcing provider.
|Benefits Selecting a Single-Source Loan Outsourcing Provider|
|Build and Maintain a Strong Relationship||By partnering with a single-source loan outsourcing provider, it is much easier to build a working relationship and manage provider performance.|
|Reduce Costs While Improving Efficiency||With a single-source loan outsourcing provider model, everything is handled by one company, thus reducing additional charges from outsourcing to multiple parties.|
|Enhance Borrower Experience and Improve Retention Rates||Using sophisticated technology, a single-source loan outsourcing provider builds compliant white-label solutions to enhance customer service. Speeding up your business’s transactions with quality service keeps customers coming back.|
|Boost Brand Reputation||You can demonstrate your commitment to providing exceptional end-to-end quality by selecting a trusted single-source loan outsourcing partner.|
#1 Build and Maintain a Strong Relationship
Choosing a single-source loan outsourcing provider 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 moving to a business process outsourcer, you’ll likely see a reduction in capital and operational costs. Many auto lenders opt for a loan outsourcing provider because of the cost savings alone. A single-source loan outsourcing provider model can reduce costs as one provider executes everything, thus reducing 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 loan outsourcing 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 Loan Outsourcing Partner
Single sourcing may present the opportunity to enhance your brand’s reputation in another way. Choosing a trusted, well-known single-source loan outsourcing 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 loan outsourcing 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 suits you, now may be the right time to consult an established loan outsourcing provider to explore the advantages further.
If you are looking for a single-source loan outsourcing provider 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 the benefits of a single-source outsourcing provider and how we can help, Contact our team today and learn how our cloud-based loan origination products can transform your business.