In 2023, lenders are anticipating fraud losses and litigation expenses. Q4 2022 earnings calls had a constant theme — risks and controls, and digital transformation are priorities for many of the top lenders. Originations seem to be trending down and charge offs are increasing, as lenders found their credit policies riskier than expected. But, lenders can improve their portfolio performance and decrease operational losses and costs while maintaining a lean and agile environment.
Informed provides you with insights to meet regulatory and audit requirements, improve revenue collections and dealer management, and meet future aspirations.
Audit, Legal, Compliance Assurance
Our audit and assurance services help lenders see further and deeper into their businesses. We help Lenders to:
- Meet assurance demands outlined in regulations and standards
- Enable revenue recovery strategies for chargebacks
- Review portfolios for risk oversight, and
- Expedite data transfer acquisition and logistics
By providing confidence and unlocking analytics in loan documents, we help organizations quickly trust the data they’re reviewing. Audits are not only a requirement, but also a valuable tool for understanding the current status of a company, and offer insights to guide future planning.
Audit Analysis with Third Party – Client Attorney Privilege
Informed brings audit technology, a flexible methodology, and bright minds together delivering a high-quality digital audit response. And, reduces the burden on your team while uncovering deeper insights. We focus on what matters, so you can too.
The purpose of an audit is to obtain an independent opinion about a company’s operations. This opinion provides insight into whether the company’s reports are accurate and reliable.
Having a long term legal partner that is pre-vetted ensures engagements are timely and quick while ensuring the organization is protected by client attorney privilege.
Revenue Recovery – Retroactive evaluation
As charge offs and losses increase lenders have the ability to collect damages for applications submitted with defects or altered documentation, misrepresenting applicant information.
Informed designed a revenue recovery campaign for a prime lender focused on dealers who submitted falsified or defective documentation on loans leading to charge- offs due to performance (i.e. 30, 60 day no pay accounts). The results:
- 16% revenue recovery vs. 3% with the lender’s previous strategy
- 14.6% increase in average dollar value recovered
- 197% program ROI
As the market tightens and losses are top of mind again, ensure you are lending to the right customers while reducing delinquency. The focus on budget savings will lead to the automation of collection strategies that efficiently lower costs. Leverage the situation as a strategic opportunity to guide and inform future business decisions.
Reconciliation management. Waste less time and trust your numbers.
Auditing makes certain that companies represent their data and documents accurately, in accordance with regulatory and legal standards. Often, ancillary products aren’t properly classified or are classified broadly. Tire & Wheel, Appearance Protection, Bundled Products, etc… as shown as “Warranty.”
Lenders have specific, public policies governing the amount of allowable back-end corresponding to particular ancillary product contract types. Our software enables lenders to better classify ancillary products according to their more granular type so that policies are standardized and correctly applied..
Compliance functions remain under-staffed, and the workload keeps increasing due to expanding regulations. More regulations mean more time spent reviewing laws and regulations, risking auditable communication between lenders and analysts. Complex laws in a regulated environment require additional investment in technology allowing enhancements, rule reviews, and higher function reviews requiring cross-validation.Lenders face changing regulations (like California Assembly Bill 2311 and Senate Bill 1311 regarding GAP insurance), that are difficult to monitor and require training and messaging. Informed ensures that your GAP and other ancillary products are in compliance and identifies defects affecting dealer management agreements. This enables you to creates recovery strategies enabling legal and compliance teams to defend audit and compliance findings.
Purchasing portfolios and reviewing loan servicing documents is a difficult, often manual undertaking. Informed’s document automation process, expedites financial institutions’ portfolio review and unlocks unstructured data – transforming it to structured data. We derive textual representations of context from documents to map to organizations’ systems including CRM tools or Data warehouses.
Our fraud layer and dealer insights can provide valuable attributes when determining the value of a portfolio as well as the expected risk associated. Reviewing propensity to overstate and understate income in real-time for an entire portfolio on pretrained technology is an invaluable tool.
Audit quality is our highest priority. Quality informs every aspect of our audit practice, from strategy to delivery, and guides us in supporting and developing our professionals. That pursuit of audit quality is at the center of our culture of continuous improvement and innovation, as we seek to make our best work today even better tomorrow.
We’re investing in transforming audit and are committed to being the best long term partner for our clients.
Compliance is essential to financial institutions functioning effectively and with confidence. Informed is helping today’s business leaders improve the performance and operational processes of their organizations.
We are experts, so you don’t have to be
Informed adds value beyond the audit by helping you ‘see around the corner.’ By asking insightful questions we provide a thoughtful perspective so you can give guidance to the board and senior management. We’re continually monitoring and adapting the program in response to a changing economy, technologies, and regulatory requirements.
Our document automation quickly assesses your audit requirements so you can understand the next actions required for the best outcome.
Request a demo to see how Informed transforms your documents and data into decisions. With no integration required and only a one time fee, you’ll see quick, measurable results. You’ll achieve compliance with industry standards and regulations, reduce your organization’s overall risk profile, and improve the financial posture of your institution.
With more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa, Jessica Gonzalez is now the Director of Lending Strategies at Informed.IQ.