Integrated Servicing Solutions: The Key to Thriving in an Ever-Changing Landscape
These days, auto account servicing is not for the faint of heart.
The already complex nature of auto lending is being amplified by near-constant change: regulations, financing programs, and even models of auto ownership are undergoing periods of transition. What remains constant though all of this change is the need to streamline your operations to improve profitability, reduce risk, and elevate the borrower experience.
Stand-alone solutions that automate isolated processes will deliver modest profitability improvements, but they won’t address the underlying gaps in efficiency, risk management, and the borrower experience. More than likely, going down the path of stand-alone solutions will only reinforce broken processes and operational silos.
For servicers that want to do more than just survive in today’s complex servicing landscape, system consolidation and integration is key.
Instead of creating silos, you can consolidate your servicing operations using a single, integrated platform like Sagent’s Account Servicing Platform that offers direct access to a single source of data. This helps you improve operational efficiencies, your regulatory compliance, and the borrower’s overall experience, all while reducing costs and lending risk.
The highest cost to servicing a loan is personnel, followed by fees and penalties. Automating your processes with a fully integrated servicing solution reduces your costs on all three fronts.
When it is done right – with a holistic view of your operations and a defined vision for your future – automation is not just about reducing headcount, it’s about streamlining your processes. By eliminating repetitive, manual tasks, you free up time for your employees to perform less tedious, higher value work. Moreover, automated processes can streamline title management, end-of-term leases, balloon functions, and vehicle remarketing.
But beyond that, automated processes are far more efficient at monitoring for red flags in borrower activity. And when it comes to managing subprime portfolios, automation improves the chances for recovery by monitoring demographics and borrower events.
Automation is also a critical component to mitigating your risk and the related costs associated with risk in the market. Every manual touchpoint introduces the potential for error — which can drive up costs from unexpected mistakes, fees, and penalties.
When it comes to risk management, the benefits of automation are only fully realized with an integrated platform that offers access to a single data source. Servicing operations that are built on a patchwork of single-function applications, incompatible platforms, and legacy systems result in information silos and processing delays. In addition, rules and decisions that are up to date in one system may not yet be synced in another, which could cause your staff to miss vital steps or critical deadlines.
Automation, combined with a single workflow for customer service, payments, collections, default processing, and recovery, ensures that you are both timely and consistent with borrower communications.
Elevate the Borrower Experience
Automation is essential – but it is only one piece to a larger puzzle. Borrower engagement is also a key component to improving profitability.
Borrowers increasingly expect 24/7 access to their account data and loan statements. Servicers that combine intuitive self-service tools with real-time data are better positioned to deliver on these expectations. Account Connect from Sagent Lending Technologies is one such self-service portal. Borrowers can access their information 24-hours-a-day, 7-days-a-week on any device with Account Connect.
Up your game with technology to provide your borrower with a better experience and to address typical borrower pain points before they materialize. Furthermore, a system that can support multiple lending products and present a comprehensive view of the borrower can create new marketing opportunities for you.
An Extra Hand
Even with the right technology platform in place, you may still need an extra assist with back-office functions to keep your profitability in line. An experienced business process outsourcing (BPO) provider like Sagent Lending Technologies can help you fill in your resource gaps and streamline your portfolio management.
Your BPO solution provider should be able to cater to your needs with both a la carte and end-to-end services. From auto loan and lease care to subprime servicing and remarketing, a BPO provider like Sagent can provide you with the resources you need to grow wisely.
More Value from Your Operations
You may lack a crystal ball, but there is one thing you can be sure of: uncertainty will continue to define the auto lending market for the foreseeable future. To thrive in this landscape, you must gain more control over your servicing operations. Your best option is to explore integrated, scalable solutions that deliver today while building for tomorrow.