PointPredictive, a technology company that provides AI solutions for spotting fraud, plans to release a version of its software geared toward powersports and auto dealerships in 2019, Chief Strategist Frank McKenna told Powersports Finance.
Utilizing machine learning and AI, the company provides a predictive scoring solution designed to identify applications most likely to result in default. For instance, the system analyzes loan applications for red flags related to credit history or mismatched information like a wrong address.
PointPredictive has historically worked with lenders, but McKenna believes that a version of the software would benefit dealers because it would allow them to see if applications they are submitting are high-risk.
“We want to create the product because we want to inform the dealership about their risk level, which they may not be aware of, based on the applications that are being submitted,” McKenna said. “So using our technology and pattern recognition, we know at any given dealership what their loans would look like because we work with so many lenders, and we get to see all the applications and how they score.”
Dealerships are lenders’ first defense against fraud, and the goal is to keep them “better informed because inevitably when you go out to a dealership that’s been attacked by a fraud ring, they have no idea how the lenders were seeing this risk,” McKenna said.
There is no target date yet for the dealer software, but PointPredictive is aiming to launch in 2019.