FactorTrust is committed to joining the powersports finance space, Scott Brackin, vice president of auto finance, told Powersports Finance.
“We are fully in it [the powersports industry] now,” Brackin said. “A lot of companies, they want to test before they implement, so there is a series of testing that’s going on with the players in the industry at different stages.”
Atlanta-based FactorTrust, an alternative data provider, expects their role in powersports to grow with time as the industry expands, Brackin said. “When we started in auto two years ago, we didn’t have one customer,” he added. “Now we are in a situation where we have about an 80%-plus adoption rate. I think that’s going to hold in powersports. It will be based on the prediction of data. If we are focused on the consumer, I have no reason to believe our data will not be as predictive as it turned out in the auto space.”
FactorTrust is taking on a “let’s test first, and walk before you run” attitude, said Brackin. The company’s goal is to show how lenders “can remove potential bad debt decisions and replace those bad decisions with more positive outcomes and be able to substantiate higher roll outcomes,” he added.
While FactorTrust currently has “several large players” in various stages of the queues, a date has not been set for when the testing phase will be complete, Brackin said. “It’s hard to give an exact date, because though we can typically provide performance results within a few weeks, our lender customers may not be able to look at the data for a month or more,” he added.
FactorTrust began digging into powersports early in 2015 to learn the size of the industry and the opportunity for growth, Chief Executive Greg Rable previously told Powersports Finance. The company expects to have a better understanding of the industry by the second quarter of 2016, he said.