What are now the basic strategy and mission of the Company?
The Fiserv mission is to provide integrated technology and services solutions that enable best-in-class results for our clients. Within the Lending Solutions division, our goal is to deliver the next generation lending experience.
What are the focused sales & marketing objectives for your company in the next year?
One of our key focuses is our latest origination product, the Automotive Loan Origination System v5. We are working to migrate our remaining clients to the latest version of our loan origination technology, as well as adding new clients to grow our automotive loan origination market share. We are also focused on maintaining the top spot in the auto remarketing business, as Fiserv is currently the largest third-party remarketing company in the U.S.
Another area of focus is expansion of our auto lending footprint internationally. We already have good penetration in Canada, and we plan to leverage the knowledge we’ve gained there to explore other global opportunities based on market analysis.
What do you see as your company’s biggest opportunities in next year?
Fiserv is in a very positive position financially, and our executive management team has made well-founded and well-funded strategic decisions, with impressive results such as achieving nearly 40 percent share of the captive finance origination space. Our biggest opportunities reside in bringing our digital capabilities to maturity while driving even more efficiencies and value to our clients.
What are the major or specific challenges for your management team in 2011?
Like our lender clients, we are keeping a watchful eye on potential regulatory changes. With an expected 300 changes from the newly-created Consumer Financial Protection Bureau (CFPB), we have no idea what the overall impact will be to our business.
What is your assessment of the automotive market & the industry right now?
Developing, enhancing and maintaining efficient processes can be challenging for captive lenders. One thing they can’t do is divert attention away from fine-tuning day-to-day performance because that’s what ultimately leads to increased profitability and future growth.
The future really lies with technology that makes it easier to fund and close more loans. The technology being used must take advantage of constant innovation, including embedded rules that automate decisioning, configurable interfaces and easy integration with third-party systems.
eContracting that completes the origination cycle more efficiently requires faster and more wide-spread adoption. The eContracting process greatly reduces the time needed for loans to be approved and funded. Early adopters of eContracting are already realizing important benefits such as faster deal payments from lenders. The industry as a whole, though, needs to take the next steps toward mainstream adoption. For lenders, an eContracting approach provides a competitive advantage. Going paperless and streamlining the process saves time and labor costs. But dealers are big winners too. It can take as long as a week for a deal to be funded with a paper contract, but electronic contracts can result in same-day or next-day funding. Contracts in transit are virtually eliminated, and that means better cash flow.
What has been your company’s biggest accomplishment in the past year?
We concentrated on solutions that work together to provide for the whole lending life cycle, no matter what is being financed. That holistic approach is key to our success and it allows us to continue to capitalize on opportunities. For instance, the mortgage market has been depressed, but the auto lending market, including leasing, has been quicker to rebound. Because Fiserv plays in both industries, we’ve been able to weather the ups and downs and are experiencing consistent growth.