SAN JOSE, Calif., Aug. 18, 2017 /PRNewswire/ --
HIGHLIGHTS:
- New FICO solution instantly discovers and evaluates
millions of alternative offers to deliver the best offers to
auto lenders, empowering them to aggressively compete for business
without compromising risk standards, growth targets, or compliance
requirements
- At the core of the FICO solution is a sophisticated decision
engine that leverages prescriptive analytics to improve
performance and optimize deal offers in real-time
- Solution was officially launched at FICO's annual Auto
Mastermind event in Silicon Valley, held August 17
FICO, a leading provider of predictive analytics and decision
management software, today unveiled an automotive industry-specific
loan origination solution.
Leveraging its deep analytic expertise coupled with advanced
algorithms and the latest optimization technology, FICO enables
auto finance companies to instantly evaluate millions of
alternative offers to aggressively compete for business
without compromising risk standards, growth targets, or
compliance requirements.
"This innovative FICO solution brings advanced analytics in
real-time to the origination processes. Lenders can discover
thousands or possibly millions of offer alternatives to deliver the
most appropriate offers to dealers and customers," said Anil Goyal,
senior vice president, Automotive Valuation & Analytics, Black
Book. "This solution allows for the integration of vehicle values
and depreciation rate forecasts to enable lenders to estimate
accurate loss projections and overall profitability while
delivering the ultimate in choice to customers."
As the automotive industry and car buying experience
dramatically change, auto finance companies need to make
data-driven lending decisions in real time. In a recent report by
Deloitte on "Financing The Future of Mobility: Auto finance
in the evolving transportation ecosystem," the digital disruption
to origination and underwriting of auto loans is made clear.
"Historically, customers have rarely relished the process of
initiating a loan, with its reams of paperwork and long wait times
at the dealership. That's already beginning to change, as auto
retailers look to adopt customer-centric omnichannel retail
models."
"Today's digital-first consumers expect simplicity and instant
gratification at every touchpoint of their car buying journey.
Given increasingly fierce competition, dealers must be equipped to
deliver instant, compelling, profitable, and flexible financing
offers across digital channels and in the dealership," said
Ken Kertz, senior director of the
FICO auto practice. "By enabling finance companies to balance
competing priorities with an analytically-driven approach,
satisfied customers will be able to actually drive cars off the lot
instead of being bogged down by burdensome paperwork or greedy deal
terms."
Leveraging the power of the FICO® Xpress Optimization
Suite and FICO® Origination Manager, the new auto
industry solution is designed to generate multiple optimized deal
structures for approved applicants, giving the customer and the
finance professional greater flexibility to balance competing
business outcomes (such as lowering risk or winning market share),
as well as negotiate and instantly adjust the terms of the loan
(length, interest rate, or monthly and down payments).
At the core of this offering is a sophisticated decisioning
engine that enhances productivity and profitability for
lenders by enabling them to respond to loan applicants instantly,
eliminate negotiation turnaround times, manage risk, and
significantly reduce manual paperwork.
For more information, please visit
http://www.fico.com/en/auto-lending.
About FICO
FICO (NYSE: FICO) powers decisions that
help people and businesses around the world prosper. Founded in
1956 and based in Silicon Valley, the company is a pioneer in the
use of predictive analytics and data science to improve operational
decisions. FICO holds more than 175 US and foreign patents on
technologies that increase profitability, customer satisfaction and
growth for businesses in financial services, telecommunications,
health care, retail and many other industries. Using FICO
solutions, businesses in more than 100 countries do everything from
protecting 2.6 billion payment cards from fraud, to helping people
get credit, to ensuring that millions of airplanes and rental cars
are in the right place at the right time.
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SOURCE FICO