Informed reduces lending bias in the auto lending space using Artificial Intelligence (AI) and machine learning technology. A real-time underwriting and funding process greatly improves the consumer experience for those who have been historically mistreated by the lending system, both by the service levels they’ve received and the uncertainty they’ve faced with their credit applications. These learnings apply across the personal lending space and for full spectrum borrowers, especially in a rising interest rate environment.
Reducing Friction in the Auto Lending Process
Lenders and dealers are using AI and machine learning to decide and fund consumer credit applications in real-time with higher accuracy, in a compliant and auditable fashion while reducing conscious or unconscious bias and reducing error rates. Real-Time verification of consumer documents improves speed and accuracy.
Reducing friction in the auto lending process is important not only to consumers, but also to lenders and dealers. Leading auto dealers and lenders are discovering that they can offer faster, easier, and more secure customer experiences simply by leveraging their mobile phones. Further improving the experience is the automated validation of dealer documents. Everything from the RISC, VSC, GAP waiver, odometer statement, etc can be checked for accuracy against lender’s specific funding rules.
Banks Are Shifting Focus to Income Verification Controls
And, with the prevalence of fraud and collections increasing, banks are shifting focus to income verification controls. Dealers can verify identity at onboarding and lenders can verify and authenticate income which mitigates fraud and decreases credit risk. And, as added benefits, capture rates increase, contracts in transit times decrease and dealers get paid faster.