defi INSIGHT

Insights into Modern Lending

ALTERNATIVE CREDIT DATA: MANAGING PORTFOLIO RISK

Lenders have long relied heavily on scores from the big three credit bureaus. However, the bureaus have recognized that alternative credit

AUTO FINANCE INDUSTRY TRENDS 2020

Today’s lending market looks very different than it did even just a handful of years ago. More customers are checking auto

HOW TO HIRE THE BEST BUSINESS PROCESS AUTOMATION COMPANIES IN THE BANKING INDUSTRY

Business process automation (BPA) replaces inconsistently-executed manual activities with consistently-executed workflows and decisions. The result for financial services providers: Lower processing

WHICH ALTERNATIVE CREDIT SCORE COMPANIES ARE BEST?

The best LOS systems calculate alternative credit scores for each loan type offered. To start collecting alternative credit data on your

AUTO LOAN DEFAULT STATISTICS 2020

According to the New York Fed, US subprime loans are going delinquent at rates unseen since the Great Recession. Auto loan

HOW TO SELECT THE BEST COMMERCIAL LENDING SOFTWARE VENDORS

According to the American Bankers Association, only half of large banks and 38% of small banks currently use an online or

MILLENNIAL BANKING TRENDS: HOW LENDERS ARE ADAPTING

The millions of people born in the US sometime between the early 1980s and mid-1990s now outnumber baby boomers. For banks,

LOAN ANALYTICS SOFTWARE FOR THE BANKING INDUSTRY

Big data has transformed businesses in every industry. Banks now use data acquired from nearly every step of the loan origination

BUSINESS PROCESS AUTOMATION FOR BANKING LOAN ORIGINATION

Business process automation has helped the banking industry bring efficiency to high-volume processes. It brings speed and accuracy to account openings

WHICH LOAN ORIGINATION SYSTEM SOFTWARE IS BEST FOR YOUR ORGANIZATION?

It’s an exciting time to be in the lending industry. Major technological advances in loan origination system software have made it

THE PROS AND CONS OF SELECTING LOAN ORIGINATION SYSTEM VENDORS BASED ON MARKET SHARE

Lenders looking for an LOS often start by checking loan origination system market share. That can reveal industry leaders and niche

4 MUST-HAVE LOAN ORIGINATION SYSTEM FEATURES FOR COMPETITIVE LENDERS

The lending industry is evolving. Quickly. Innovative new loan origination system (LOS) features are helping lenders stay ahead, even in competitive

USED VEHICLE VALUATION TIRE-KICKING RULE # 1: DON’T GUESS

It’s impossible to tell precisely how much a used vehicle is worth without detailed historical data. You can kick the tires

BUILDING A LOAN ORIGINATION SYSTEM USING SALESFORCE? READ THIS FIRST.

Salesforce has developed a lending solution built on its CRM platform. Financial services providers that have invested in Salesforce and want

LENDING SOFTWARE: HOW IT HELPS IN A RECESSION

As of this writing, there’s no pending recession, though there’s frequent speculation of a downturn, perhaps in 2020. When that downturn

LENDING SOLUTION IT SPENDING: SETTING PRIORITIES

Information technology (IT) has transformed the way modern lending works. Fincos, banks, and credit unions have access to more lending solutions

FINTECH DISRUPTION IN LENDING 2019

Mentioned in the context of a technology discussion, disruption invariably means innovation. The world of finance is undergoing disruption, and as

BIG-TIME ANALYTICS FOR SMALLER LENDERS

Large lending institutions often have personnel dedicated to analytics. These professionals have backgrounds in statistics, knowledge of SQL query language, and

THE BENEFITS OF CREDIT RISK MANAGEMENT AUTOMATION FOR LENDERS

For many lenders, credit risk management depends on years of experience. Their credit risk expertise is a mix of shrewd loan

FOUR WAYS DECISION RULES DRIVE LOAN ORIGINATION AUTOMATION

Decision rules are a big reason why modern, cloud-based loan origination solutions are so efficient. Decision rules may be used in

HOW LOAN ORIGINATION BUSINESS RULES REV AUTO LENDING

Advancements in fintech are transforming loan origination into an increasingly-automated process. Loan applications are now often turned into booked loans with

IS IT TIME TO UPGRADE YOUR AUTO LENDING PLATFORM?

If you can’t remember when your current auto lending platform was originally implemented, it’s probably time to consider an upgrade. Technological

HOW AUTOMATING AUTO LOAN VALIDATIONS AND STIPULATIONS CAN IMPROVE YOUR LOAN PORTFOLIO

Automation is continually improving auto lending process efficiency, along with the quality and consistency of lending decisions. Replacing manual, mundane tasks

AUTO DEALER LOAN FRAUD PREVENTION STARTS WITH AN LOS UPDATE

Fraud has many faces. Auto dealer loan fraud isn’t as frequent as income, employment, or identity fraud by individuals and fraud

HOW MOBILE APPS IMPROVE YOUR DIRECT LENDING OPPORTUNITIES

J.D. Power’s 2018 U.S. Consumer Financing Satisfaction Study, cited in Automotive News, highlighted the value and benefit of easy-to-use mobile apps.

ARE LONG-TERM AUTO LOANS A BAD IDEA?

Q: Are long-term auto loans a bad idea? A: It depends on who you ask. If you ask borrowers, they can

3 AUTO FINANCE ANALYTICS INNOVATIONS

Auto finance analytics are usually the domain of specialists schooled in the finer points of finance and advanced statistics. Some specialists

HOW TRENDED DATA CREDIT REPORTS IMPROVE LOAN ORIGINATION DECISIONS

A trended credit data report paints a more accurate picture of a borrower’s financial position by detailing their spending habits and

HOW TRENDED CREDIT DATA HELPS YOU APPROVE MORE LOANS WITHOUT MORE RISK

The major credit bureaus now provide lenders with trended credit data reports to complement traditional credit scores. This gives lenders greater

IMPROVING YOUR LOS: A TRENDED CREDIT DATA REPORT EXAMPLE

The major credit bureaus now provide lenders with trended credit data reports to complement traditional credit scores. This gives lenders greater

SUBPRIME AUTO BUBBLE: WHEN, HOW, AND WHAT TO DO ABOUT IT

Outstanding auto loan debt reached $1.27 trillion in the final quarter of 2018. Earlier this year the New York ...

USING TRENDED CREDIT DATA FOR BETTER LENDING DECISIONS

You can draw immediate conclusions from a credit score, especially scores at extreme ends of the credit scoring range. ...

UPGRADING TO AN LOS WITH INTEGRATED DMS IS WORTH IT. HERE’S WHY.

J.D. Power reports that nearly 84% of new-vehicle buyers in 2018 arranged financing through a dealership. For lenders, that ...

WHICH CREDIT BUREAU DATA SHOULD AUTO LENDERS USE?

When’s the last time you thought about your credit bureau data? If you’re like most auto lenders, you usually don’t ...

DIGITAL NOTIFICATION STRATEGIES FOR AUTO LENDERS

Fintech innovation is reshaping auto financing into a streamlined customer experience, as Boston Consulting Group (BCG) notes in Staying Ahead ...

WHAT TO EXPECT WHEN EXPECTING A NEW SAAS LOAN ORIGINATION SYSTEM

We’ve met a lot of lenders in this situation: Their legacy loan origination system has become too pricey to maintain. ...

AUTO LOANS FOR MILLENNIALS: WHAT YOU NEED TO KNOW

According to U.S. Census Bureau population projections, millennials are expected to overtake Baby Boomers in 2019 as the younger group’s ...

HOW AUTO LENDERS CAN PROSPER DURING DOWNTURNS

With 17 million vehicles sold in 2018 and 16.8 million new cars and light trucks predicted in 2019 by NADA, ...

USED VS. NEW FOR AUTO LENDERS: WHY CUSTOMERS CHOOSE USED

U.S. News and World Report succinctly contrasts the pros and cons of buying new vs. used cars. In today’s auto ...

CANADIAN AUTO LENDING MARKET TRENDS

The Transunion Q4 2018 Industry Insights Report describes a relatively smooth road ahead for the Canadian credit market in ...

AUTO FINANCING TRENDS: RIDESHARING, CAR SHARING, SUBSCRIPTIONS, AND AUTONOMOUS VEHICLES

Four growing trends, driven by technology and millennial usage and behavior, are depressing vehicle ownership, and, consequently, auto financing. Uber ...

HOW IMPROVED FRAUD RECOGNITION REDUCES DELINQUENCIES AND DEFAULTS

Delinquency and default rates remain relatively stable, according to a recent Experian report. While that may be comforting news, ...

WHY AUTO LENDERS ARE REPLACING HOME-GROWN LENDING SOFTWARE WITH CLOUD-BASED SOLUTIONS

With auto sales having peaked in 2017, lenders need every advantage to stay profitable. The industry is also adjusting ...

CLOUD LOAN SOFTWARE, AWS, AND SAAS: LOS MUST-HAVES

If your loan origination software (LOS) runs on servers located in your facility, annual licensing and maintenance costs are increasing, ...

AUTO LOAN STRAW BUYERS AND OTHER FRAUDSTERS

The most painful way to learn about auto loan straw buyers is to become their fraud victim. According to PointPredictive, ...

EMPLOYMENT MISREPRESENTATION IN AUTO LOAN APPLICATIONS

It’s the last day of the month. The dealer’s numbers are good, but one more deal would make it a ...

INCOME MISREPRESENTATION AND AUTO LOAN APPLICATION FRAUD

You’ve processed hundreds to thousands of auto loan applications this month. Some lending decisions were near-instantaneous—auto approval and auto declines—aided ...

IT’S EASY TO MISREPRESENT INFORMATION ON AUTO LOAN APPLICATIONS

What percentage of the auto loan applications you received this month intentionally misrepresented information about the borrower, vehicle, or dealer? ...

THE RISE OF FRAUD AND MISREPRESENTATION IN AUTO LOAN ORIGINATION

While fraud has always been a problem with auto loans, technology is making it easier to get a steal of ...

HOW TO FIGHT AUTO LENDING FRAUD

Anti-theft technology has reduced the incidence of traditional auto theft. So thieves have shifted to auto lending fraud. If you ...

HOW AUTO STRUCTURING CAPTURES MORE AUTO LOANS

In a competitive auto lending market, what gives you the greatest advantage in capturing more auto loans and growing your ...

IT’S TIME TO TRADE EXCEL & ACCESS FOR INTEGRATED AUTO LOAN ANALYTICS

If you’re a lender with a legacy auto lending solution, you likely know you should upgrade to one with integrated ...

WHY YOU NEED ANALYTICS AND REAL-TIME REPORTING FOR AUTO LENDING EFFICIENCY AND PROFITABILITY

The rise of big data is transforming how organizations plan, manage, and evaluate their businesses. Auto lending is no different. ...

HOW INTEGRATED ANALYTICS IMPROVES AUTO LOS EFFICIENCY

Big data and analytics are transforming every process- and data-intensive industry. Organizations that fail to recognize the value (and the ...

HOW ANALYTICS HELP LENDERS MAINTAIN AUTO LENDING COMPLIANCE

Maintaining regulatory compliance requires a focused and continued effort. Lenders need to understand frequently-changing federal and state regulations and translate ...

OPTIMIZE YOUR UNDERWRITING PROCESSES WITH AUTO LENDING ANALYTICS

Only a fraction of banks, credit unions, and fincos use the full power of auto lending analytics to their advantage. ...

ACCELERATE AUTO LOAN ORIGINATION BY REPLACING PAPER WITH DIGITAL

Advances in fintech bring ever-greater efficiency to the auto purchasing experience. Cloud, mobile, and the wealth of automotive information available ...

ECONTRACTS: ESIGNATURES MAKE LOAN ORIGINATION FAST AND SECURE

Anyone with years of experience in lending knows paperwork has become voluminous as a result of new regulations. Paperwork is ...

APPLY-ANYWHERE AUTO LOANS: MOBILE LOAN CONVENIENCE

The combination of cloud, wireless, and mobile technologies have created consumer expectations of convenient commerce. Business transactions that once could ...

HOW DIGITAL DOCUMENTS ENSURE AUTO LENDING REGULATORY COMPLIANCE

Banks, credit unions, and fincos with auto lending operations can improve efficiency and reduce costs by replacing paper documents with ...

INCREASING CAPTURE RATES WITH CONFIGURABLE MOBILE AUTO LOAN APPLICATIONS

Per Automotive News, 2018 vehicle sales, with few exceptions, continue to disappoint. There are many reasons for the sales plateau. ...

MOBILE AUTO LOANS ARE THE FUTURE OF DIRECT AUTO LENDING

An ever-increasing number of business transactions are conducted via mobile devices. Statistics from Cyber Monday 2018 indicate more than a ...

WHAT 2018 AUTO LOAN DELINQUENCY RATES MEAN FOR 2019

How concerned should you be about 2018 auto loan delinquency rates? The answer depends on your credit policies, their effect ...

TOP 3 AUTO LOAN RISK ASSESSMENT SOFTWARE CONSIDERATIONS

Modern lending solutions take advantage of the latest fintech capabilities to help you assess and effectively manage risk throughout the ...

WHAT YOU NEED TO KNOW ABOUT AUTO LOAN DELINQUENCY STATISTICS

The headline of the Federal Reserve Bank of Kansas City’s Macro Bulletin summarizes the Q2 2018 auto loan delinquency statistics: ...

AUTO LOAN PORTFOLIO RISK MANAGEMENT: PROBLEMS TO AVOID

Experian’s State of the Automotive Finance Market – A look at loans and leases in Q2 2018 provides an excellent, ...

HOW TO USE AUTO LENDING RISK MANAGEMENT STRATEGICALLY

A comprehensive auto lending risk management strategy addresses every phase of the lending cycle from applications through servicing. Regular analysis ...

HOW AUTO DELINQUENCY RATES AFFECT YOUR LENDING PORTFOLIO

Auto loan delinquency rates will always be a challenge for lenders, who must balance acceptable risk with profitability. As an ...

HOW TO RESPOND TO CAR LOAN DELINQUENCY RATES IN GOOD TIMES AND BAD

The Kansas City Federal Reserve’s MAIN STREET VIEWS Policy Insight Auto Loan Delinquency Rates Are Rising, but Mostly among Subprime ...

AUTO LOAN RISK MANAGEMENT FOR YOUR PORTFOLIO

With auto sales in decline in 2018, lenders are looking for options to build a profitable portfolio. There’s always the ...

HOW AN LOS LOCKS IN TILA COMPLIANCE

It should be easy to comply with the Truth In Lending Act (TILA), more commonly referred to as Regulation Z ...

USING AUTO LOAN PORTFOLIO RISK ASSESSMENT WITH AN LOS

A regular practice of auto loan portfolio risk assessment allows lenders to continually evaluate and adjust their credit policies in ...

THE BENEFITS OF DIGITAL AUTO LOAN UNDERWRITING WORKFLOWS

The concept of workflow has been around for decades. The assembly line instituted by Henry Ford was the shining example ...

THE AUTO LOAN DELINQUENCY TRENDS THAT MATTER

How worried should you be about current auto lending market and delinquency trends? Subprime auto loan delinquencies have been on the ...

AUTO LENDING RISK ASSESSMENT FACTORS YOU CAN’T OVERLOOK

Risk is an inherent part of the auto lending industry. Initially, risk was almost exclusively associated with the criteria and ...

3 KEY PROBLEMS WITH AUTO LENDING ANALYTICS AND HOW TO AVOID THEM

The auto lending process—applications through final payments—creates volumes of valuable applicant, borrower, process, and portfolio data for lenders. When auto ...

WHAT LOAN MANAGEMENT SYSTEM CONFIGURATION DOES FOR YOU

How easily can you make modifications or customize your loan management system to meet current (and future) lending needs? It ...

WHY AUTO LOAN PORTFOLIO ANALYTICS ARE SO VALUABLE

If you’ve been in the auto lending business for any length of time, you’ve captured or created volumes of applicant, ...

HOW TO SELECT THE BEST LOAN SOFTWARE FOR CREDIT UNIONS

Credit unions are experiencing a surge in auto lending. That was one of the pieces of good news for auto ...

THE BENEFITS OF AUTOMATION FOR AUTO LOAN COMPLIANCE

Today’s robots and long-gone steam engines have something in common: Automation. The essence of automation is the replacement of a ...

DIGITAL LOAN PROCESSING: WHAT’S IN IT FOR YOU

What’s in it for me? That’s a legitimate question for every lender to ask when evaluating the features, capabilities, and ...

USING AUTO LOAN DECISIONING RULES TO ACHIEVE COMPLIANCE

Auto lending regulations are the result of consumer advocates, industry lobbyists, and government officials proposing, negotiating, and compromising to bring ...

UNDERWRITING COMPLIANCE: HOW TO ACHIEVE, MAINTAIN, AND DEMONSTRATE IT

How do you balance the demands of operating an efficient and profitable lending business while complying with increasing regulations? The ...

HOW TO REDUCE LENDING RISK WITH ALTERNATIVE CREDIT DATA

What degree of lending risk are you willing to tolerate? You probably ask yourself this daily. Your answer varies with ...

2018 AUTO LOAN DEFAULT STATISTICS: KEEPING THE REAL HORSEPOWER IN YOUR PORTFOLIO

Hybrid cars don’t use any gas going downhill, so their drivers often coast as long as possible, increasing their overall ...

HOW AUTO DECISIONING IMPACTS LENDING PRACTICES

How will the second half of 2018 play out for auto lenders? Will tariffs, trade wars, higher gas prices, rising ...

HOW TO MEET THE CHALLENGES OF AUTO LOAN COMPLIANCE

Either you’re compliant or you’re not. In the long run, achieving compliance is the easier choice, but it does require ...

YOUR LOAN MANAGEMENT SOFTWARE SHOULD BE CLOUD-BASED. HERE’S WHY.

Cloud computing has been around for more than a decade. It has changed the way that software is developed, delivered, ...

ALTERNATIVE CREDIT DATA CREATES NEW LENDING OPPORTUNITIES

The true value of gathering and storing data from an ever-increasing number of sources is our ability to gain insight ...

WHY YOU NEED A DIGITAL LENDING PROCESS

If you haven’t updated your legacy lending system in a while, or are looking for something better, you’re in the ...

HOW TO CHOOSE THE BEST LOAN ORIGINATION SYSTEM VENDOR FOR YOUR BUSINESS

Pretend your current loan origination system is an automobile. How would you describe it— antique, clunker, ready for recycling, gas ...

THE ADVANTAGES OF AN AUTOMATED LOAN PROCESSING SYSTEM

You can’t go a day without the benefits of automation. From better-quality automobiles to robotic picking and packing at Amazon ...

AUTO FINANCE NEWS THAT WILL SHAPE LOAN PROCESSING 2018-2019

2018’s big auto finance news is that the US House and Senate voted to repeal the CFPB decree on auto-loan ...

HOW TO IMPROVE LENDING AND OPERATIONAL EFFICIENCY IN THE BANKING SECTOR

Declining auto sales and fewer loan opportunities are increasing competition among lenders. In these challenging market conditions, improving lending and ...

HOW TO KEEP UP WITH INDIRECT AUTO LENDING COMPLIANCE REGULATIONS

Tension and uncertainty created by the CFPB’s 2013 Indirect Auto Lending Bulletin evaporated April 18, 2018, when the US Senate ...

HOW INTEGRATED LENDING PROCESS SERVICES CAN IMPROVE YOUR LOAN PROGRAM

Whenever I fix something at home, I gather everything I’ll need to make it happen: tools, supplies, instructions—the lot. Sometimes ...

AUTO FINANCE INDUSTRY TRENDS THAT WILL DISRUPT LENDING AS WE KNOW IT IN 2019

Let’s begin with this top-of-mind, worrisome auto finance industry trend: After years of growth, auto sales are declining. It’s a ...

HOW NEW LENDING TECHNOLOGY IS RESHAPING THE LOAN ORIGINATION PROCESS

Technology: Does it help or hinder society? From a personal perspective, there’s nothing to debate. Daily, we enjoy the benefits ...

3 LOAN PROCESS IMPROVEMENT IDEAS IN BANKING TO OPTIMIZE LENDING PRACTICES

Over the last decade, banks and credit unions, have adopted mobile and web technologies with unprecedented, and in some ways ...

5 KEY FEATURES YOUR LOAN ORIGINATION PLATFORM MUST HAVE

Unprecedented technological advances in the last decade have sparked great efficiencies in the auto industry. Design, prototyping, and manufacturing techniques, ...

HOW TO BYPASS 2018 AUTO LOAN DELINQUENCY TRENDS AND DATA WITH 3 KEY LENDER STRATEGIES

In recent years, the US has experienced a growing economy, low interest rates, and a downward unemployment trend. Auto lending, ...