Tag: auto lending

For auto lenders, detecting fraud is a continuously evolving and growing challenge. The auto finance industry is disproportionately impacted by fraud, with bad actors looking to secure auto loans for expensive vehicles and then vanish. According to TransUnion, U.S. auto lenders saw a 38% year-over-year increase in total synthetic identity exposure – totaling $1.8 billion – in the first half of 2023 alone. As the tactics and techniques fraudsters use to secure auto loans become more and more advanced, detecting fraudulent or tampered information has become increasingly difficult. To stay ahead of fraudsters and prevent losses, auto lenders need to…

Long, complex approval cycles are a common problem for auto lenders. They can take a long time to process as lenders struggle with outdated manual workflows. Thankfully, automating auto lending can shorten the approval cycle for the customer while reducing risk and cost for the lender. The Approval Challenge for Auto Lenders Lenders are handling auto loans in record volumes. The overall dollar volume of these loans rose by a third year-on-year in mid-2021. Lenders are also operating in an incredibly volatile time as pandemic-based loan forbearance programs, stimulus checks, and a trend towards refinancing have made it more challenging…

When it comes to auto lending, lenders want to be able to make decisions about their borrowers quickly and accurately. However, this can be tricky in an industry that is often bogged down by manual, paper-driven underwriting processes. One of the most effective solutions for this issue is an application programming interface (API) that bridges a lender’s existing back office system, document processing, and income analysis. An Income Analysis API allows companies to accept income forms on their website, electronically bridge the paper and PDF gap, and immediately verify borrower financial information. While automation can often be intimidating, forward-thinking lenders…