Rollout of new originations technology across B2C, B2B and
fleet segments improves speed, ensures affordability and gives
in-house software team more control; Volvo Cars has won a 2024
FICO® Decision Award for Customer Onboarding &
Management
FICO World – FICO (NYSE: FICO)
Highlights:
- Volvo Cars has strategically leveraged FICO® Platform to
revolutionize its customer onboarding process across B2C, B2B and
fleet segments
- Volvo Cars improved its speed, ensured buyers’ affordability
and gained agility
- Volvo Cars has won a 2024 FICO® Decision Award for Customer
Onboarding & Management
Today at FICO® World, the industry's leading analytic and AI
event, global analytics software leader FICO announced that Volvo
Cars has strategically leveraged FICO® Platform to revolutionize
its customer onboarding process across B2C, B2B, and fleet
segments. FICO’s cloud-hosted platform ensures swift real-time
approvals, with credit checks completed in a matter of seconds.
Volvo has won a 2024 FICO® Decision Award for Customer Onboarding
& Management.
More information: https://www.fico.com/en/fico-platform
“We originally launched FICO Platform for subscriptions, and due
to its success, we made it the backbone for all online orders,
streamlining leasing and purchasing processes,” said Sujitha
Davidson, product manager at Volvo Cars. “This strategic
partnership underscores Volvo Cars' commitment to embracing
cutting-edge technologies for a seamless and efficient customer
experience.”
Employing FICO decisioning capabilities on FICO Platform, Volvo
has established a scalable and robust credit assessment solution
that seamlessly integrates internal and external data sources. The
platform facilitates transparent and error-minimized decision
flows, emphasizing automation in underwriting processes and
providing a singular source for all necessary data.
Reducing the Decision Time
Volvo needed to reduce the average decision time and promptly
collect the required documents for risk assessment by reaching out
to the customer at the earliest opportunity. This avoided repeat
requests for documentation, and process delays that could lead to
lost sales.
To minimize processing time, FICO® Platform generates a list of
required documents tailored to specific referral reasons when
customers are checking out online. They have 24 hours to upload,
which accelerates the process. Utilizing a dynamic document upload
process resulted in a 75% submission rate among customers who were
presented with the document upload list. Assessments were completed
in just an hour for these customers, compared to 11 hours when they
did not upload or 17 hours when not requested.
Ensuring Affordability
Inflation has the potential to change a customer’s ability to
afford a car, which is particularly a problem with BTO (build to
order) cars that can take up to a year to complete. Volvo needed to
ensure that customers can still afford products around the time of
car delivery.
“In the UK market, we had issues where a customer had an ongoing
contract but might no longer be able to afford the car payments due
to losing their job,” Davidson reported. “Given the length
of the BTO timeframe and the changing economic difficulties, we
needed to reassess affordability to see if the customer could still
afford the car. We don’t want to sell a car to someone who can’t
afford it.”
In response to this challenge and to ensure the continued
affordability of cars for customers upon delivery, an automated
procedure was implemented to reinitiate soft credit checks on
customers and reassess their creditworthiness. This occurs if it
has been over 90 days since the first risk assessment. “This is a
soft check, so it doesn’t impact the consumer’s credit score,”
said Davidson. The automated workflow for the second credit
assessment has saved 971 hours in manual labour.
Promoting In-House Software Development
“To enhance our control, agility, and cost-effectiveness, it was
essential for our in-house development team to have the tools to
build in an agile manner,” said Davidson. “Internal software
development offers numerous benefits, including swift
responsiveness to changes, retention of knowledge, adaptability
with iterative development, and strategic alignment.”
With FICO® Platform, the Volvo Cars team can customize software
solutions according to specific needs and requirements; increased
authority over features, functionality, and the user interface
guarantees precise alignment of the software with business
processes and objectives. Thanks to FICO's assistance, the software
development and maintenance have been effectively brought in-house.
This led to a 50% increase in the number of new features developed
in a year.
“Volvo has made dramatic strides in the competitive car market
worldwide,” said Nikhil Behl, chief marketing officer at
FICO. “Their innovative processes and commitment to customer
service demonstrate how FICO can power the future of auto
sales.”
“In recognizing Volvo Cars, we commend their innovative approach
to streamlining processes, notably the incorporation of a 90-day
credit reassessment mechanism,” said Paul Mah, senior editor,
CDO Trends and one of the FICO Decision Awards judges.
“This reduces risk for both the company and the customer. We were
also impressed by the sheer amount of labor hours saved through
their dynamic solutions. Volvo's commitment to efficiency and
customer-centricity sets a commendable standard in the automotive
industry.”
FICO® Platform revolutionizes how organizations make decisions
and apply intelligence across the customer lifecycle. It creates an
“enterprise intelligence network” that powers customer connections.
This creates a radical new way to operationalize data-driven
decisioning and AI with responsible AI at the core and the agility
to adapt to our changing world.
To see the full list of this year’s FICO® Decision Awards
winners, check out:
https://www.fico.com/en/decisionsawards
About the FICO® Decision Awards
The FICO Decision Awards recognize organizations that are
achieving remarkable success using FICO solutions. A panel of
independent judges with deep industry expertise evaluates
nominations based on measurable improvement in key metrics;
demonstrated use of best practices; project scale, depth and
breadth; and innovative uses of technology. The 2024 judges
are:
- Andrew Birmingham, editor, Mi3
- Eric Kavanagh, CEO Bloor Group and host,
InsideAnalysis
- Elizabeth Lumley, deputy editor, The Banker
- Paul Mah, senior editor, CDO Trends
- Laura Martins, editor, IT Forum
- Paul Robinson, VP credit management at Canadian Tire
Bank (Previous Winner)
- Shiv Sehgal, EVP audience analytics at RSG Media
(Previous Winner)
- Nick Vitchev, director at Chartis
The winners of the FICO Decision Awards will be spotlighted at
FICO® World 2024, April 15 – April 18, 2024 in San Diego,
California.
About Volvo Cars
Volvo Cars was founded in 1927. Today, it is one of the most
well-known and respected car brands in the world with sales to
customers in more than 100 countries. Volvo Cars is listed on the
Nasdaq Stockholm exchange, where it is traded under the ticker
“VOLCAR B”.
"For life. To give people the freedom to move in a personal,
sustainable and safe way." This purpose is reflected in Volvo Cars'
ambition to become a fully electric car maker by 2030 and in its
commitment to an ongoing reduction of its carbon footprint, with
the ambition to be a climate-neutral company by 2040.
As of December 2023, Volvo Cars employed approximately 43,400
full-time employees. Volvo Cars' head office, product development,
marketing and administration functions are mainly located in
Gothenburg, Sweden. Volvo Cars' production plants are located in
Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing
and Taizhou (China). The company also has R&D and design
centres in Gothenburg and Shanghai (China).
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics and data science to
improve operational decisions. FICO holds more than 200 US and
foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and
many other industries. Using FICO solutions, businesses in more
than 100 countries do everything from protecting 4 billion payment
cards from fraud, to improving financial inclusion, to increasing
supply chain resiliency. The FICO® Score, used by 90% of top US
lenders, is the standard measure of consumer credit risk in the US
and has been made available in over 40 other countries, improving
risk management, credit access and transparency.
Learn more at https://www.fico.com
FICO is a registered trademark of Fair Isaac Corporation in the
U.S. and other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240417369192/en/
For further comment contact: FICO UK PR Team Wendy
Harrison/Parm Heer/Matthew Enderby ficoteam@harrisonsadler.com 0208
977 9132
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