Open Lending Expands Auto Lending Inclusivity with Improved Loan Decisioning Accuracy as Vehicle Costs Soar
November 01 2023 - 8:00AM
Business Wire
With access to new alternative data attributes
for prospective buyers, Lenders Protection™ enables automotive
lenders to meet yield targets while serving the near-prime segment
in an uncertain market
Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or “the
Company”), an industry trailblazer in automotive lending enablement
and risk analytics solutions for financial institutions, today
released the addition of new alternative data attributes for auto
loan applicants to more accurately inform the risk score generated
by its Lenders Protection™ solution. Access to expanded criteria
from TransUnion and LexisNexis allows Lenders Protection to analyze
more robust car buyer data for loan decisioning. These enhancements
help financial institutions provide more competitive pricing to a
larger borrower pool, increase loan volume, minimize risk and grow
return on assets with the true capability that comes from extensive
data fueling cutting-edge AI.
"We are committed to meeting the evolving needs of the market
and continuously improving our services to navigate volatility,
uncertainty and lingering inflation," said Keith Jezek, Chief
Executive Officer at Open Lending. "As affordability issues
persist, we’re excited to help financial institutions engage a
wider range of deserving borrowers by offering risk-mitigated
vehicle loans and maximizing their return on assets."
Traditional metrics often fail to provide a comprehensive view
of potential borrowers' creditworthiness, according to Harvard
Business School ("Invisible Primes: Fintech Lending with
Alternative Data”, 2021). Open Lending’s Lenders Protection™
utilizes alternative data within its industry-leading AI and
machine learning decisioning engine to identify near- and non-prime
borrowers with low credit scores and short credit histories who are
less likely to default. Without considering these alternative data
attributes, otherwise qualified candidates face rejection or higher
interest rates.
To provide greater access to vehicle ownership at a fair
interest rate, Lenders Protection now offers:
- Decisioning that includes new data sources and new alternative
data attributes, like the number of payments made over the past
year, time elapsed since the initiation of the first auto loan,
total good ACH amount, and the number of auto and non-auto
inquiries over the last three years.
- Extended loan protection with a more inclusive credit score
range that aligns with the decline of consumer credit scores.
These new criteria promote greater inclusivity by increasing
overall approval rates and yielding higher approval rates for car
buyers with limited credit history. These scorecard enhancements
are now in place for all Open Lending customers.
About Open Lending
Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based
pricing, risk modeling and default insurance to auto lenders
throughout the United States. For over 20 years we have been
empowering financial institutions to create profitable auto loan
portfolios in excess of $20 billion with less risk and more reward.
For more information, please visit www.openlending.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231101012214/en/
Alison Smith for Open Lending openlending@ink-co.com
Investor Relations Inquiries openlending@icrinc.com
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