New FICO solution instantly discovers and evaluatesmillions 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.
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.