Trended Credit and Alternative Data Attributes Improve Dealer and Consumer Experience in Auto Finance Market
October 21 2020 - 8:00AM
In times of economic uncertainty, financial institutions are
looking for new and innovative ways to approve qualified customers.
Auto finance lender Arivo Acceptance has leveraged TransUnion’s
(NYSE: TRU) CreditVision solution suite to accomplish this feat and
generate a significant uplift in both application volumes and
capture rates for the subprime market – while also turning in some
of the lowest loan losses in their industry.
In collaboration with TransUnion, Arivo has brought a fresh
perspective to the subprime lending industry through two
generations of machine learning platform models. The roll-out of
the first generation risk and pricing models used an
industry-leading combination of TransUnion’s alternative,
short-term lending and trended credit data and resulted in a 40%
increase in same-dealership volume, expanding Arivo’s already
strong footprint in the subprime lending industry.
Arivo successfully deployed its second-generation machine
learning risk and pricing framework with a broad set of TransUnion
data in early 2020 – citing another 20% incremental increase in
same-dealership application volume.
“There are many complexities to address in the subprime auto
lending market including dealership stipulations, pricing and deal
parameters to name a few. This analytics exercise yielded powerful
results and underscored the success of models built by Arivo as
well as the value of TransUnion’s trended and alternative data,”
said Satyan Merchant, senior vice president and automotive business
leader at TransUnion. “When a customer like Arivo is able to build
models and leverage our data to address these factors, while also
highlighting a proven track record and generating momentum in the
subprime auto market, it is an exciting proposition for the
industry as a whole.”
This approach is shaping the lending market and providing
consumers with new economic opportunities. Consumers that have
traditionally been regarded as higher-risk can benefit from the use
of this data-fusion methodology and secure greater access to credit
– often at lower interest rates. A deeper understanding of a
consumer’s risk trajectory allows lenders to enhance pricing and
risk decisions while increasing approval rates.
“The key to finding success with AI and machine learning methods
in the credit risk space comes down to strong feature engineering,
and the data you use,” said Robert Avery, CEO at Arivo. “By
partnering with TransUnion, we have more tools at our disposal to
help dealers provide better pricing, fewer stipulations and bring a
more seamless lending experience to the subprime segment. As a
result, we’re expanding our partnerships with our dealerships,
while facilitating more same-day funded loans every day with fewer
headaches for both dealerships and customers alike.”
For more information on improving risk decisions and alternative
and trended credit data, please visit
https://www.transunion.com/product/creditvision. The results from
the case study with Arivo Acceptance can be found here.
About TransUnion (NYSE: TRU)TransUnion is a
global information and insights company that makes trust possible
in n safely represented in the marketplace. As a result, businesses
and consumers can transact with confidence and achieve great
things. We call this Information for Good.®
A leading presence in more than 30 countries across five
continents, TransUnion provides solutions that help create economic
opportunity, great experiences and personal empowerment for
hundreds of millions of people.
http://www.transunion.com/business
About Arivo
Acceptance
Arivo is a subprime indirect auto lender, striving to deliver on
their brand promise of Subprime Simplified™. With operations in 12
states and counting, Arivo continues to expand its operations by
simplifying the subprime lending process through innovative
technology, automation, and data-driven intelligence.
www.Arivo.com
Contact |
|
Dave BlumbergTransUnion |
|
|
|
E-mail |
|
dblumberg@transunion.com |
|
|
|
Telephone |
|
312-972-6646 |
TransUnion (NYSE:TRU)
Historical Stock Chart
From Mar 2024 to Apr 2024
TransUnion (NYSE:TRU)
Historical Stock Chart
From Apr 2023 to Apr 2024