New loan management tech highlights auto lending shift

One of the best ways to gauge the direction an industry is heading is by taking a look at the types of vendors that exhibit during a major trade show.  

If the mix of exhibitors is fairly consistent year over year, one can surmise the market is static, but if there is a dramatic change in the make-up of exhibitors — such as what was experienced at Auto Finance Summit 2023 (AFS) in Las Vegas. It could indicate that a noticeable industry shift is underway. For years, AFS has been considered the ‘go-to’ event for companies like Inovatec.  

The event was invaluable to us for connecting with lenders looking for automated loan origination systems (LOS) and loan management systems (LMS). Many lenders still need these solutions and automation continues to dominate the industry. But there is also an appetite for lenders to integrate new, third-party capabilities into their LOS and LMS platforms to drive efficiency, stay current with end-user expectations, and differentiate their own offerings in a highly competitive marketplace.  

This emerging opportunity was conveyed to the developers of these third-party providers, and they came to AFS in full force to demonstrate these features and find their way into the lending ecosystem. Many of these capabilities have resonated with lenders.  

 Exhibitors included providers of payment capabilities, fraud detection and loan decisioning:  

• Repay embeds payment acceptance capabilities into LOS and LMS platforms, providing easy and convenient ways for consumers to remit payments on their auto loans. This feature is becoming increasingly important as customers expect a frictionless experience in all facets of lending, including payment. Younger customers consider writing a check an unnecessary nuisance; they are far happier submitting a payment through any number of popular apps or digital wallets. Repay addresses this challenge by enabling lenders to accept multiple payment forms in a secure, cost-effective and convenient manner that will make their customers happy. 
• Point Predictive, a provider of AI-driven fraud prevention technology, uses alternative data to evaluate the veracity of loan applicants. This ability is essential in an era when fraud remains the biggest threat to this industry. Lenders and dealers can use Point Predictive’s features to authenticate loan applicants, verify sources of income and identify fraudulent applications. As lenders look to increasingly automate their lending activities, verifying the identity and income of each applicant is critical.  
• TruDecision, an expert in the collection and analysis of complex datasets, helps auto lenders build decisioning models that lead to increased revenue and reduced risk. By harvesting data from a range of traditional and non-traditional sources, TruDecision assists lenders in creating flexible models that improve decisioning activities while also providing clarity on portfolio performance.  

AFS is a great barometer of where the industry is heading and gauges the potential impact of new products and services. If this year’s conference is any indication, the auto lending sector has a promising future, built upon a foundation of exciting new services that can deliver tremendous benefits to both lenders and consumers.  

Brendon Aleski is the head of strategic alliances at Inovatec.