SAN DIEGO, Calif. — Roadrunner Financial, MotoLease and Fuel Capital Group are investing resources into developing their technology to automate the verification process of underwriting, the lenders said at Powersports Finance Summit 2019.
For example, Fuel Capital Group is working on a pilot to automatically verify certain documents directly with the consumer. “The platform will actually request the documents directly from the consumer and immediately tell our system whether it validates the information that was entered on the credit application,” Blake Henke, manager of data and analytics at Fuel, said on a panel about using technology to enhance the customer experience. “Then on the back end, our system will verify that through things like [Equifax’s] The Work Number, so that if the dealer enters an income number for the underwriting guidelines, the document that the customer provided is validated through [optical character recognition].”
Fuel Capital will then validate the information to make sure that it has accurate info from both the dealer and the borrower. The lessor plans to roll out the tool with other stipulations such as proof of income and proof of residence.
MotoLease is also working to automate verification, but specifically for subprime deals, which tend to require more verification than prime loans, said Managing Partner Emre Ucer.
“From the verification side, subprime is the big challenge,” Ucer explained. “Because that’s where you need the most stipulations. And we are trying to automate a lot of that as much as possible. We are just implementing completely new tools to bypass income verification by using automated bank statement verification tools.”
Roadrunner Financial, meanwhile, uses multiple data sources to understand if the consumer is accidentally inflating their income and how that will push Roadrunner’s underwriting guidelines, said President Jason Guss.
“We’re able to run a series of fraud checks to see whether or not the character element needs to be checked,” Guss said. “Usually, there are other types of stips that are a lower annoyance to a dealer or slower for a dealer to get to come up with that we can use to help clear fraud concerns. So, some of our credit tiers cut our income verification rates by as much as 50% to 60% based off the algorithms that we’ve been able to develop.”