CPS Announces New FinTech-Driven Automotive Financing Platform Enhancements
December 19 2022 - 8:30AM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) ("CPS"), an
independent specialty FinTech that provides indirect automobile
financing to individuals with past credit problems, low incomes or
limited credit histories is continuing its robust roll out of
artificial intelligence, machine learning solutions to provide
greater payment flexibility and more efficient processing of auto
loans. The company has closed out the year with three major
partnerships to improve efficiencies, dramatically reduce funding
time, and offer more payment options for borrowers.
The company has chosen Informed.IQ to automatically calculate
income, collect and clear credit stipulations and dealer docs,
creating a better dealer and consumer experience throughout the
auto lending process. CPS expects Informed.IQ’s AI tools to
significantly reduce the funding time.
For decades, CPS has focused on bringing improved intelligence
to auto lending, becoming a leader in FinTech initiatives that
enhance the front-end review and financial decision-making process.
Now, CPS is also helping automate the backend servicing experiences
and has partnered with Prodigal to better manage the collections
and servicing workforce and process. Prodigal is a Consumer Finance
Intelligence solution that uses AI to analyze agent and borrower
conversations and enhance profits, experience, and compliance.
For a customer standpoint, CPS named PayNearMe as its primary
payments partner. This partnership will accelerate the auto
lender’s digital transformation and deliver a frictionless customer
experience across all digital payment types. PayNearMe will
eliminate onsite cash payments, dramatically reduce the number of
customers who pay by check and transition the majority of customers
to electronic payments through greater pay options.
"Our whole business has become artificial intelligence and
machine learning driven, from credit to servicing," said Mike
Lavin, Chief Operating Officer with CPS. "Adding these three
partners to our backend and front-end system at the start of the
new year enables us to make the loan funding process easier,
provide more accessible payment options for our customers, and use
AI to effectively improve collections by reducing the
workload.”
Since the company began operations in 1991, as of September 30,
2022, it has purchased over $19.7 billion in contracts and serviced
a total managed portfolio of approximately $2.7 billion with
approximately 185,000 active customers. Artificial intelligence and
machine learning has taken the company’s loan decision making
process to new heights.
In late Q1 of 2023 the company will be introducing a new AI
credit decision model that will improve fraud detection, lessen
credit losses, and increase approval rates. Later in the year, CPS
will be introducing an AI-focused scorecard for its recovery and
repossession system that will combine delinquency data with machine
learning allowing the company to better analyze when the right time
is to recover a vehicle.
About Consumer Portfolio Services Consumer
Portfolio Services is an independent specialty FinTech that
provides indirect automobile financing to individuals with past
credit problems, low incomes or limited credit histories. We
purchase retail installment sales contracts primarily from
franchised automobile dealerships secured by late model used
vehicles and, to a lesser extent, new vehicles. We fund these
contract purchases on a long-term basis primarily through the
securitization markets and service the contracts over their lives.
Our operational headquarters are in Irvine, California with four
additional servicing branches in Nevada, Virginia, Florida and
Illinois.
Since operations began in 1991 through June 30, 2022, we've
purchased over $19.1 billion in contracts. As of June 30, 2022 we
service a total managed portfolio of ~$2.6 billion with ~162,000
active customers and 799 employees in our branches in five states.
We maintain dealer relationships in 48 states. Our common stock is
traded on the NASDAQ National Market System under the ticker
CPSS.
Media Contact Brenlyn Motlagh Gateway Group,
Inc. (949) 899.3135
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