Kevin Collins, President of Fiserv Lending Solutions

1. Strat­e­gy & Com­pa­ny Mis­sion

The Fis­erv val­ue propo­si­tion is to low­er a finan­cial institution’s costs and increase their capa­bil­i­ties through the effi­cient deliv­ery of com­plex tech­nol­o­gy and pro­cess­ing ser­vices that could not be afford­ably devel­oped on their own.

As a result, Fis­erv con­tin­ues to focus on solu­tions and ser­vices we can devel­op and deliv­er that help the finan­cial insti­tu­tions – includ­ing those in the cap­tive finance mar­ket – to increase their effi­cien­cy and build more loy­al­ty with­in their cus­tomer base. In fact, one of our five val­ues is ‘cre­ate with pur­pose’ — what can we do to help solve every­day prob­lems for our clients and their cus­tomers?

For near­ly three decades, Fis­erv has pro­vid­ed com­pre­hen­sive auto­mo­tive finance soft­ware solu­tions and BPO ser­vices for cap­tive finance com­pa­nies, inde­pen­dent auto finance orga­ni­za­tions and banks in North Amer­i­ca. Using Fis­erv ser­vices, auto lenders have been able to han­dle both unprece­dent­ed growth and sur­vive the eco­nom­ic down­turn.

We also believe that devel­op­ing close part­ner­ships with clients nur­tures a high lev­el of respect and trust and pro­vides con­ti­nu­ity, regard­less of the prod­ucts or ser­vices. And clients agree. They regard us as experts in man­ag­ing port­fo­lios of any size and val­ue the abil­i­ty to use Fis­erv sys­tems and resources to han­dle peaks and val­leys in their port­fo­lios.

The com­bined pres­sure of shrink­ing mar­gins, new reg­u­la­tions and a slug­gish econ­o­my has made effi­cien­cy absolute­ly nec­es­sary. And because Fis­erv offers solu­tions in the broad­er lend­ing are­na – not just auto finance – we con­tin­u­al­ly look at ways and have strate­gi­cal­ly invest­ed to ensure that lenders and ser­vicers are bet­ter able to bal­ance oper­a­tional effi­cien­cy with new chan­nels, prod­ucts and process­es.

2. Mar­ket­ing Objec­tives for 2013 & Beyond

There has been a sig­nif­i­cant increase in focus across Fis­erv busi­ness lines on uncov­er­ing oppor­tu­ni­ties to improve the cus­tomer expe­ri­ence. To man­age to the cur­rent land­scape, are doing three things:

  1. Sup­port­ing com­pli­ance and reg­u­la­to­ry require­ments
  2. Cre­at­ing a holis­tic view of the con­sumer
  3. Reduc­ing redun­dant process­es and ser­vices in our soft­ware

Hav­ing buy­er infor­ma­tion – and being able to ana­lyze it – is becom­ing a dai­ly activ­i­ty for auto lenders. Because the data comes from appli­ca­tion, clos­ing and pay­ment trans­ac­tions, we’re encour­ag­ing clients to take a more inte­grat­ed approach. In oth­er words, we rec­om­mend they more tight­ly inte­grate their LOS with their ser­vic­ing plat­form. Not only does this mean that all the ana­lyt­i­cal infor­ma­tion starts in one data­base and stays in one data­base, but this approach also pro­vides greater insight about the buyer’s cred­it wor­thi­ness and behav­ior. More and more, our clients are rec­og­niz­ing that buy­er behav­ior has a huge effect on how they pro­vide financ­ing. And they’re look­ing to us as a tech­nol­o­gy provider to eval­u­ate what’s going on rel­a­tive to buy­er expec­ta­tions and trans­late those trends into sys­tem func­tion­al­i­ty.

We’re very excit­ed about a new direc­tion we’re tak­ing with our tech­nol­o­gy offer­ings across the lend­ing spec­trum. We are cur­rent­ly work­ing on an ini­tia­tive that presents a new way to think about lend­ing. Instead of mas­sive and com­plex soft­ware sys­tems, we’re devel­op­ing more com­po­nen­tized func­tion­al­i­ty with­in a scal­able frame­work. Com­mon func­tions can be shared between depart­ments. In oth­er words, the func­tion for request­ing a cred­it report in orig­i­na­tions is the same as the func­tion used in loss mit­i­ga­tion. Our strat­e­gy is a whole new way to man­age the lend­ing process. The ulti­mate goal is to incor­po­rate all your lend­ing soft­ware into one deliv­ery mech­a­nism – even non-Fis­erv com­po­nents. This uni­ver­sal inter­face is designed to cre­ate a sub­stan­tial­ly bet­ter “lend­ing expe­ri­ence.” It gives our clients a tru­ly tai­lored user expe­ri­ence to meet their spe­cif­ic busi­ness needs and makes their entire lend­ing oper­a­tion more self-suf­fi­cient. Fis­erv is com­mit­ted to this direc­tion, and is invest­ing sig­nif­i­cant­ly in mak­ing it hap­pen.

3. Mar­ket Oppor­tu­ni­ties Ahead in 2013

Because con­sumers can use more than one chan­nel to find their next car – or their next car loan – we must con­tin­ue to have a sense of urgency about mak­ing sure that every trans­ac­tion counts. We see three key oppor­tu­ni­ties that impact the mar­ket­place and allow the best use of lend­ing tech­nol­o­gy:

  1. Third-par­ty col­lab­o­ra­tion to offer seam­less ser­vices
  2. eCon­tract­ing and oth­er dig­i­tal lend­ing ini­tia­tives, and
  3. Busi­ness process out­sourc­ing

Web ser­vices incor­po­rat­ed into our plat­forms lever­age the Inter­net for real-time infor­ma­tion from vir­tu­al­ly any appli­ca­tion, using our LOS or Account­ing Sys­tem as the sin­gle point of access. This frame­work inte­grates oth­er appli­ca­tions – for exam­ple, the deal­er por­tals, the cred­it bureaus, Lex­is­Nex­is, Kel­ley Blue Book – so they com­mu­ni­cate with each oth­er.

We use ser­vices from our part­ners and make the appli­ca­tions work togeth­er to help dri­ve the lend­ing process. And we don’t have to write new code to cre­ate these ser­vices. As a col­lec­tive group, our busi­ness part­ners rep­re­sent indus­try lead­ers on many fronts and, togeth­er, we give our clients a more effi­cient, more cost-effec­tive lend­ing envi­ron­ment. For instance, the risk man­age­ment com­po­nent of our LOS v5 process­es elec­tron­ic deal­er ePor­tal cred­it requests through its inte­gra­tion to a num­ber of loan appli­ca­tion net­works. This capa­bil­i­ty min­i­mizes cred­it port­fo­lio risk expo­sure for both the client and their deal­ers.

Besides that, we’re see­ing some progress with paper­less ini­tia­tives in the auto finance mar­ket­place, but are still hop­ing for greater adop­tion of eCon­tract­ing. Some clients aren’t ready to take the plunge but have at least start­ed to roll out eVal­i­da­tion. That paper­less com­po­nent uti­lizes a deal­er por­tal to auto­mate con­tract data analy­sis, and it can be a good first step into eCon­tract­ing. Even this sin­gle piece great­ly reduces the time need­ed for loans to be approved and fund­ed. The deal­er net­work is a big win­ner with this too. While it can take as long as a week for a deal to be fund­ed with a paper con­tract, deal­ers are real­iz­ing same-day or next-day fund­ing due to the eVal­i­da­tion work­flow. Hav­ing more deals close more quick­ly is great for the indus­try.

Final­ly, one thing that makes Fis­erv unique is our abil­i­ty to offer auto finance prod­ucts and ser­vices through var­i­ous deliv­ery chan­nels. Specif­i­cal­ly, the Con­tact and Ser­vic­ing Cen­ter from Fiserv—located in Amherst, NY—allows lenders to out­source select­ed busi­ness process­es to achieve greater effi­cien­cies and economies of scale. Fis­erv com­bines deep domain exper­tise with many years of IT and ser­vic­ing expe­ri­ence to deliv­er high-qual­i­ty ser­vices as a seam­less exten­sion of a lender’s busi­ness. For instance, our vehi­cle remar­ket­ing ser­vices help clients strate­gi­cal­ly remar­ket returned and repos­sessed vehi­cles by mov­ing inven­to­ry quick­ly; obtain­ing high returns in short amounts of time; and ensur­ing on-site rep­re­sen­ta­tion at the auc­tions or vis­i­bil­i­ty in numer­ous Inter­net sell­ing chan­nels.

In 2012, we’ve broad­ened our out­sourc­ing offer­ings with a suite of six ser­vices that we call Busi­ness Tech­nol­o­gy Ser­vices. It’s espe­cial­ly rel­e­vant to lend­ing because reg­u­la­to­ry reform, port­fo­lio risk and grow­ing vol­ume in new and used car sales and leas­es is cre­at­ing sig­nif­i­cant chal­lenges and forc­ing quick oper­a­tional changes. IT groups with­in our client base have to man­age large amounts of data from mul­ti­ple sources; ensure pri­va­cy and secu­ri­ty; mon­i­tor com­pli­ance; and align staff with work­load. Clients are care­ful­ly exam­in­ing crit­i­cal com­po­nents that go into suc­cess­ful­ly sup­port­ing their vehi­cle finance process­es, and we believe that those who sup­ple­ment staff with out­sourced resources from Fis­erv have a real advan­tage. That’s espe­cial­ly true because the ser­vices – whether it’s sys­tems inte­gra­tion, test­ing ser­vices, or infra­struc­ture man­age­ment – can be mixed and matched, depend­ing on a client’s objec­tives.

4. What is your assess­ment of the auto­mo­tive mar­ket & the indus­try right now?

The indus­try is grow­ing again! Almost dai­ly, there are reports about the growth in auto sales. Leas­ing is rebound­ing. It’s fun to be in the space again. Even with some nag­ging chal­lenges, most­ly relat­ed to uncer­tain reg­u­la­tions and still shaky con­sumer con­fi­dence, Fis­erv is noth­ing but opti­mistic.
Cap­tives are rec­og­niz­ing that a dif­fi­cult time in the finan­cial mar­kets and in auto­mo­tive fund­ing has also pre­sent­ed a great oppor­tu­ni­ty to deploy new busi­ness mod­els, espe­cial­ly relat­ed to cred­it risk prac­tices. The end goal is to increase vol­ume at the deal­er­ship while meet­ing car buy­er expec­ta­tions for loan prod­ucts, buy­er incen­tives and cred­it terms.

More and more ini­tia­tives are pred­i­cat­ed on find­ing the best ways to offer flex­i­ble options for buy­ers and using tech­nol­o­gy to sup­port those efforts. In fact, com­pa­nies are putting tech­nol­o­gy in place to cap­ture, man­age and pro­vide a bet­ter user expe­ri­ence. For instance, com­pa­nies have select­ed our Auto LOS v5 solu­tion, in part because they want to take advan­tage of the cred­it and fund­ing com­po­nents that ful­ly auto­mate that process, from cap­tur­ing cred­it appli­ca­tions and deci­sion­ing cred­it requests, through book­ing con­tracts. Trans­par­ent to the buy­er sit­ting in the finance manager’s office are the pow­er­ful rules engines that dri­ve the sys­tem.

With our por­tal inte­gra­tions, some clients are find­ing that fund­ing deci­sions are avail­able with­in sec­onds, and the deal­er can quick­ly nego­ti­ate the specifics of cus­tomer cred­it deci­sions. That is just one exam­ple of how Fis­erv sup­ports the auto lend­ing mar­ket and is enabling lenders to man­age their oper­a­tion effi­cient­ly and cost-effec­tive­ly. As a result, auto finance com­pa­nies can do much more than ‘main­tain the sta­tus quo.’

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