Fiserv, Inc. (NASDAQ:FISV) has announced the launch of a multi-tier implementation model for its Auto Loan Origination System (LOS) and Automotive Account Servicing solutions to help new entrants expand into auto financing and growing lenders to improve their efficiencies.
According to credit bureaus, an estimated 114 million new loans and leases are expected over the next three years, and auto loans now make up 9.6% of the consumer wallet. With this increased demand for financing, new and established lenders alike want to capitalize on auto financing that requires little ramp-up time and low upfront costs without the need for dedicated resources to implement and manage.
Loan Advantage from Fiserv is designed to address the needs of new entrants and growing lenders with a packaged approach to loan configuration and implementation, through business process outsourcing (BPO) services. These services include credit processing, contract funding, dealer integrations, accounting and cash management, default management, collateral management and customer care, which enable lenders to use a single partner for their origination, accounting and servicing needs.
Bret Leech, president, Lending Solutions, Fiserv, said:
Lenders typically work with multiple vendors to tie a full solution together; they struggle with scalability and automation with limited technology, and often end up servicing accounts through manual processes. With Loan Advantage from Fiserv, the implementation is unique, as we establish key customizations upfront and then stand up the servicing, accounting and originations together, thereby shortening and streamlining the entire process of purchasing and leasing a vehicle.”
This right-sized approach to the Fiserv end-to-end solution allows for a more specialized configured or customized solution that support a lender’s individual needs. For those lenders that only need to replace certain components of their technology, Fiserv can also provide originations or servicing solutions independently in either preconfigured or specialized configuration implementation models.
Additionally, where lenders would need their own internal team for ongoing maintenance, minor system configuration changes, and to make adjustments based on the market ebb and flow,” added Leech, “the Fiserv approach builds in time to make these changes on the lender’s behalf, enabling the company to focus less on technology configurations and more on car buyers. The servicing portion is offered through BPO and can easily scale as a lender’s portfolio grows.”