Tracks Auto Finance

Data + Leadership = Successful Change

The amount of data available in the world is expected to double by the end of 2024. The vast amount of data available will provide new challenges to the way we conduct business. During this workshop, we are going to talk about leadership in the data-driven world in which we live and work. Due to the vast quantity of data, there must be an organizational shift to incorporate data processes into the entire organization, not just the IT department. Yes, data is computer science and some may even say it is rocket science, but it doesn’t have to be that way. Using tools most employees currently have on their desktop PCs, most anyone can produce data and data analysis. And last, we will discuss how to keep computers from overtaking the human aspect of work.

Key Takeaways:

  • Data is no longer the job of the CIO or IT department. Everyone should think critically about the data they collect and how they use it. Making sure that everyone in the room is involved in the process of making AI is the only way that we can make sure it’s safe.
  • Data is not rocket science. Most data problems can be solved by your current employees. Ordinary people and managers who haven’t had a lot of training can use simple tools like Microsoft Excel to make powerful analyses. Find out what your business needs to do and then figure out how to do it.
  • Having a lot of data is great, but it isn’t the same as talking to your employees and customers. A lot of big data and analytics are used too much by many businesses when they are looking for strategic ideas. And, waiting too long to make decisions can slow down businesses, frustrate employees, and make them miss out on important opportunities. It’s sometimes better to just make a decision rather than get more information or think about it more.

Completion-Driven Customer Journeys and Fraud Prevention in Auto Lending & Servicing

Many of today’s lenders invest everything possible in creating a stellar customer experience. From glossy advertising to strong dealer relationships, the best lenders are pouring time and money into reeling in new customers. But at the moment of truth — when a customer is about to onboard or needs to receive service — lenders tend to slow down. Customers find themselves bounced between agents, touchpoints, and channels, and are lost.

To be sure, in the digital age, much of the customer journey is happening independently. By making it easier to navigate a webpage or app, and by enabling the customer to interact with their lender via chat and social media, financial institutions have improved customer journeys significantly.

However, research shows that most customers still prefer to receive agent-assisted help when in need to complete a complex task or process. This last leg of the journey is often long, painful and full of friction. In many cases, these bumps in the last mile lead to a failure to complete the task. Customers attempt to finalize their loan applications, but their efforts are thwarted.

We have identified two of the primary reasons why auto lenders fail to bring interactions to completion: The prevalence of silos and legacy channels.

Key Takeaways:

  • Essential data on digitization in the automotive industry
  • How to provide a fully digital customer experience from purchase to finance to servicing
  • How to remove silos and easily collect stips, signatures, payments and verify ID in a digital, automated fashion

Using Data To Predict Subprime Auto Performance

Explore how data science is utilized to help the auto industry better predict the performance of subprime auto loans. This underserved, underbanked, and previously considered risky segment is quickly becoming a viable asset class. What does this mean for the future of subprime? Chad Stilwell will answer questions about how data and analytics can be used to better understand and improve portfolio performance and more. Chad has played a key role in many of the industry’s firsts such as crowdsourced securitizations, launching a line of credit with a reducing interest rate, and developing a technology platform that provides a book value for subprime auto loans. New approaches are under consideration every day to fuel growth, provide access to knowledge, and the freedom to do so.

Key Takeaways:

  • Define data science and how analytics are applied to the auto industry to make better business decisions.
  • Demystify subprime auto finance to open this new and viable market segment.
  • Highlight why these changes are transformative for the auto industry and how they impact lenders, dealers, and consumers.

US Auto Sales, Financing and Used Vehicle Insights

Industry overview of New and Used Vehicle Sales.
Used Car Pricing and Trends
Auto Financing Origination Data

Data is sourced from the JD Power “PIN” database comprised of DMS data from 12,000 Franchised Automobile Dealers.  In addition, data also is contributed by the NADA Used Car Guide and ALG (both of which are JD Power Companies), as well as from our Industry Forecasting Team.

Key Takeaways:

  • Data and insights to US Automotive vehicle sales, OEM Profitability segments, incentives, trends, and outlook
  • Comprehensive review of the Used Vehicle marketplace, prices, values and future outlook.
  • Key insights to the auto lending market, origination’s data includes provider segments, Loan vs. lease, credit scores, LTV’s, pricing trends and more.

Data + Leadership = Successful Change

The amount of data available in the world is expected to double by the end of 2024. The vast amount of data available will provide new challenges to the way we conduct business. During this workshop, we are going to talk about leadership in the data-driven world in which we live and work. Due to the vast quantity of data, there must be an organizational shift to incorporate data processes into the entire organization, not just the IT department. Yes, data is computer science and some may even say it is rocket science, but it doesn’t have to be that way. Using tools most employees currently have on their desktop PCs, most anyone can produce data and data analysis. And last, we will discuss how to keep computers from overtaking the human aspect of work.

Key Takeaways:

  • Data is no longer the job of the CIO or IT department. Everyone should think critically about the data they collect and how they use it. Making sure that everyone in the room is involved in the process of making AI is the only way that we can make sure it’s safe.
  • Data is not rocket science. Most data problems can be solved by your current employees. Ordinary people and managers who haven’t had a lot of training can use simple tools like Microsoft Excel to make powerful analyses. Find out what your business needs to do and then figure out how to do it.
  • Having a lot of data is great, but it isn’t the same as talking to your employees and customers. A lot of big data and analytics are used too much by many businesses when they are looking for strategic ideas. And, waiting too long to make decisions can slow down businesses, frustrate employees, and make them miss out on important opportunities. It’s sometimes better to just make a decision rather than get more information or think about it more.

Digital Sales and Financing in the Auto Market

Growth in the digital sale and financing auto market has outpaced many of our expectations and most of our consumer finance laws. This presentation will consider the full cycle of an auto finance transaction from digital marketing, to application, to repossession within an online environment. We will also discuss the legal issues that a financing company should consider when their vendors, dealers, and customers incorporate computer, tablet, and mobile transactions and disclosures.

Key Takeaways:

  • Outdated laws provide the framework for modern digital contracting, which can stifle innovation
  • Understanding how consumers will navigate a website is critical for more than just marketing–it can impact the enforceability of the contract; and
  • The automotive industry is moving faster than the law in this area. While mortgage and other industry is receiving regulatory guidance, automotive industry is not. There is an opportunity to standardize effective processes.

License Plate Data Boosts Recall Outreach Success

License plate recognition (LPR) data is playing an increasingly important role in locating recalled vehicles and making contact with owners. While traditional tactics like paper mail, email and texting have their place, OEMs are getting creative with social media and LPR data to enhance their outreach and improve their contact rates and speed. Attend this session to learn about the differences between critical and noncritical recalls and how changing laws are affecting how manufacturers are trying to reach vehicle owners. We’ll also discuss how the volume and quality of DRN’s LPR data can enhance any recall strategy.

Key Takeaways:

  • Learn about the current state of auto recalls in the U.S.
  • Learn the differences between critical and noncritical recalls and how changing laws are affecting recall outreach efforts.
  • Hear about the advantages that license plate recognition (LPR) data offer for improving recall success when used in addition to traditional contact methods.

2021 In Review: Fraud Losses Reach New Heights

Auto loan fraud in the United States is a significant problem that continues to grow at a rapid rate. In 2021, Point Predictive estimated that $7.7 billion in car sales would be financed with loans containing falsification on applications, from employment and income misrepresentation to identity and synthetic fraud that would result in a default. The $7.7 billion in losses is the highest estimated loss exposure that the industry has ever faced – a number that has nearly doubled – since Point Predictive began tracking auto loan fraud in 2013. In this presentation, we will share an analysis based on our consortium data to discuss the top auto fraud trends in 2021, forecast the tactics we expect to see from fraudsters in the coming year, and explore ways lenders can reduce losses.

Key Takeaways:

Most lenders focus their fraud risk management efforts on identity-related fraud losses since these traditional third party frauds are easy-to-identify and default at a higher rate. Yet in 2020, this fraud only accounted for roughly 20 percent of U.S. auto fraud losses, meaning 80 percent of fraud losses likely resulted from challenging-to-detect first party frauds.

In this presentation, we will share:

  • Geographic hotspots for auto lending application fraud.
  • The top trends we saw fraudsters utilizing throughout 2021 will continue to be lender’s primary pain points in 2022: income, employment, straw borrower, and synthetic identity fraud as well as credit washing.

Value Drivers in M&A and How to Compete in 2022

There has been a flurry of mergers and acquisitions for dealerships and service providers. M&A activity was at a record high level in 2021. An estimated 350 dealerships changed ownership, over 550 AutoTech companies were funded or acquired, and M&A continued its rapid pace in the F&I sector. Notably, these companies are trading at record valuations.

What will drive value in 2022? High margins, scalability, and reputation are critical factors. Companies that embrace technology and digitization in operations and marketing have higher margins, can scale quickly, and have a better customer experience, leading to higher valuations when they sell. Gina Cocking will explore the drivers of value in M&A in this sector and what companies can do now to prepare for a transaction in the future.

Key Takeaways:

  • M&A activity will continue at record levels
  • To be in the top tier of companies today, you must embrace technology and digitization to reach potential customers and enhance the customer experience
  • In the sale of a company, differentiation resulting from technology and digitization drives value

New Data: Digital Retailing Marches On…or Does It?

The pandemic sped up adoption of DR, increased PVR and decreased transaction times. But new data reveals dealers are stopping short of a full digital path-to-purchase. What are the roadblocks? Didn’t the DR new normal create cultural change? Post-pandemic, are dealers falling back into old sales processes consumers hate? Or will they advance down the digital path? Get a ‘new normal’ reality check: “Sales Process Change” is no longer a threat to profits but an imperative. This session, fueled by data, focuses on why a customer-first experience delivers not only what consumers want, when they want it, but higher PVR, transaction times and sales. Dealers will learn how the pain of not changing is greater than the pain of changing – with tactics to move past process roadblocks.

Key Takeaways:

  • Know how to overcome the obstacles blocking implementation of a deal (versus lead) generation model.
  • Acquire the key best practices that will enable sales process change, streamlining your digital retail process, and eliminating bottlenecks, disconnects and profit leaks.
  • Generate a game plan for advancing further down the digital retailing road by implementing true digital finance into the path to purchase.

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