Latest- Episode 22: Looking Beyond the Traditional Credit Score
Emerging financier Lendbuzz is using learning algorithms to tap into a population of 45 million potential auto loan customers. Rather than rely on traditional credit scores, Lendbuzz analyzes educational and employment histories of foreign-born U.S. residents in their origin countries, along with their earning potential and cash flow. Three years into the business, Lendbuzz has secured $150 million in debt and equity financing and has since grown originations to exceed $100 million since the company launched. In this episode of The Roadmap, Auto Finance Excellence chats with Amitay Kalmar about the company’s plans for the fresh capital, geographic growth and tech enhancements to propel the startup onto the main stage.
Featuring Amitay Kalmar, founder and CEO, Lendbuzz
Episode 21: Social Media Do’s and Don’ts in Auto Finance
Episode 20: Building and Retaining Customer Loyalty in the Digital Age
Episode 19: Sharpening Decisions With Alternative Data
Auto lenders are increasingly relying on nontraditional data as they hone underwriting to gain a competitive edge. Alternative data can open the door to unbanked and under-banked consumers, enabling lenders to extend beyond their typical customer base without assuming too much risk. In this episode of The Roadmap, Auto Finance Excellence chats with Chuck Berend, senior vice president and chief risk officer at First Investors Financial Services Group, about how lenders can navigate the pain points of alternative data and leverage nontraditional credit markers to sharpen decision-making.
Featuring Chuck Berend, Senior Vice President, Chief Risk Officer at First Investors Financial Services Group
Episode 18: Information Security Questions Every Lender Should Answer
Stiffer regulatory oversight of information protection practices has spurred lenders to reevaluate the way they collect and use personally identifiable consumer data. In this episode of The Roadmap, Auto Finance Excellence talks with two distinguished executives to identify what it takes to keep up with changing data security compliance requirements. Hyundai Capital America’s VP of Information Protection and Chief Information Security Officer Eddie Younker provides a guide for how lenders can build a strong foundation for information security practices. Also, McGlinchey Stafford’s Chief Privacy Officer and Commercial and Consumer Litigation Attorney Richik Sarkar details how lenders can protect themselves and their organizations from risks and liability when handling consumer data.
Featuring Eddie Younker, VP of Information Protection and Chief Information Security Officer at Hyundai Capital America, and Richik Sarkar, Chief Privacy Officer and Commercial and Consumer Litigation Attorney at McGlinchey Stafford
Episode 17: Chase Exec Outlines the Intersection Between Women, Marketing, and Auto Finance
Successful marketing hinges on knowing what consumers want — and part of that is knowing who your customers are. In this episode of The Roadmap, Auto Finance Excellence talks with Chase Auto’s Chief Marketing Officer Melinda Welsh to explore the often-missed opportunity of marketing to underrepresented demographics and promoting diversity within the traditionally male-driven industry. Welsh, who will join AFE in a dynamic and engaging fireside chat at the upcoming Auto Finance Accelerate event, also outlines how auto financiers will need to adapt strategies as the role of marketing continues to evolve.
Featuring Melinda Welsh, Chief Marketing Officer, Chase Auto
Episode 16: How Lenders Can Take Advantage of Mobility as a Service
The carshare and rideshare markets are gaining traction, and financiers must adapt their strategies or risk getting left behind. In this episode of The Roadmap, Auto Finance Excellence talks with Brian Allan, senior director of strategic partnerships at HyreCar, to discover how lenders can modify financing practices with an eye toward the mobility-as-a-service paradigm shift. Allan also outlines tactics for managing loan terms with carshare and rideshare consumers.
Featuring Brian Allan, Senior Director, HyreCar
Episode 15: CU Direct Offers Tips for Origination Growth Despite Looming Economic Downturn
Though credit unions have thrived in the current auto finance market, CU Direct is warning the 1,100 lenders on its platform to remain cautious as near-term macroeconomic factors — like rising interest rates and a potential downturn — are likely to spark additional risk factors. In this episode of The Roadmap, Auto Finance Excellence talks with Phil DuPree, CU Direct’s chief revenue officer, to discover how credit unions and other lenders can improve financing strategies amid the current market and outlines the top three ways to keep originations on an upward trajectory.
Featuring Phil DuPree, Chief Revenue Officer, CU Direct
Episode 14: Ally Exec Outlines How Lenders Can Navigate the Challenges of Unintentional Bias
Though regulators have relaxed discriminatory lending rules, auto lenders are stepping up diversity education. Ally Financial, for one, is bolstering training efforts to reduce unintentional snap judgments based on race, gender, or appearance – a concept referred to as “unconscious bias.” In this episode of The Roadmap, Auto Finance Excellence talks with Reggie Willis, Ally’s director of diversity and inclusion, to discover what lending executives can do to become more open-minded and avoid having unintentional bias trickle into interactions between dealers and their car-buying customers.
Featuring Reggie Willis, Director of Diversity and Inclusion, Ally Financial
Episode 13: Ramping Up Operations With an Eye Toward Acquisition
If there is one lesson Westlake Financial Services has learned since it started purchasing portfolios back in 2011, it’s to be prepared for hiccups along the way. Proactive communication and procedural refinement are two of the elements that enable companies to scale their business. In this episode of The Roadmap, Auto Finance Excellence talks with Paul Kerwin, Westlake’s chief financial officer, about what lenders can do to improve acquisition practices and leverage existing infrastructure for growth.
Featuring Paul Kerwin, Chied Financial Officer, Westlake Financial Services
Episode 12: How to Incorporate Diversity and Inclusion Practices in the Workplace
Collaborative corporate strategy, healthy relationships with other businesses, and opportunities that enable colleagues to fully express themselves are just a few of the benefits that come with a well-designed diversity and inclusion program for any financial services business. In this episode of The Roadmap, Auto Finance Excellence talks with two executives from Huntington Bank to discuss the steps required to develop and implement diverse and inclusive programs in the auto finance space. Tune in to find out how to ensure that the topics of race, age, and gender diversity never slip under the radar.
Featuring Rich Porrello, president of Huntington Bank’s auto finance business, and Marlon Moore, the bank’s chief diversity and inclusion officer.
Episode 11: Navigating and Strengthening Lender-Startup Partnerships
Strategic partnerships are at risk of being marred by culture clash, when the turn-on-a-dime mentality of a startup challenges the red-tape decision-making of larger finance companies. In this episode of The Roadmap, Sonia Steinway, president of Outside Financial, shares insights to help startups and their corporate partners develop – and maintain – healthy relationships. Steinway also outlines the needs for thorough compliance and privacy protocol, as well as an ability to cater to consumers’ various learning styles.
Featuring Sonia Steinway, President, Outside Financial
Episode 10: How to Embrace AI to Improve Originations
As auto lenders struggle to integrate artificial intelligence into origination models, powersports lessor MotoLease has fully embraced the technology. In this episode of The Roadmap, MotoLease Chief Executive Maurice Salter and Chief Operating Officer Emre Ucer discuss the steps involved in using AI to make independent credit decisions based on each person’s individual behavior, as well as the rationale for doing the project in-house. The pair also offer details of a soon-to-be launched website to consolidate dealer inventories and offer consumers a centralized resource with prequalification functionality.
Featuring Maurice Salter, Chief Executive, and Emre Ucer, Chief Operating Officer, MotoLease
Episode 9: Randolph-Brooks Federal CU Details the Relationship Between Customer Service and Growth
As credit unions continue to seize auto financing marketshare, knowing how they position themselves for success is key to understanding their growth. In this episode of The Roadmap, Sonya McDonald, Executive Vice President & Chief Lending Officer at Randolph-Brooks Federal Credit Union talks about the lenders’ strategy for growing direct lending by working with dealerships and how credit unions provide a unique customer service experience that bodes well for growth. She also discusses RBFCU’s long-term goal to increase automated underwriting, and even how women’s representation has grown in the credit union space.
Featuring Sonya McDonald, Executive Vice President & Chief Lending Officer at Randolph-Brooks Federal Credit Union
Episode 8: What the FTC Says Should Be on the Auto Industry’s Radar
With lingering uncertainty over what will become of the CFPB and unconfirmed appointees to the Federal Trade Commission, lenders’ compliance obligations are in flux. In this episode of The Roadmap, Dama Brown, Southwest regional director of the FTC, clears up confusion about collection practices and the Fair Debt Collection Practices Act, as well as valuable insights into a recent case again Blue Global LLC, which fraudulently sold consumer data that was promised to dealers. Brown also offers a sneak peek of a report that presents consumer sentiments about their auto purchases and financing.
Featuring Dama Brown, Regional Director, Southwest Region, Federal Trade Commission
Episode 7: How ABS Credit Enhancements Are Masking Subprime Risk
As multiple subprime auto securitizers come to the market with lower average Fico scores, longer terms, and higher loan-to-value ratios than their previous issuances, many of these deals are being rewarded with higher ratings. In this episode of The Roadmap, Joseph Cioffi, a partner at Davis & Gilbert LLP, discusses the latest trends in auto ABS, including the industry’s reliance on over-collateralization that may be masking greater subprime risk. Additionally, Cioffi also delves into trends such as the rising subprime delinquencies and losses experienced across the industry.
Featuring Joseph Cioffi, Partner, Davis & Gilbert LLP
Episode 6: How AutoGravity’s New CTO Is Tackling ‘Blocking Points’
From new security features to 3-D images and biometrics, AutoGravity has several technology development projects on its roadmap this year, according to the online auto finance company’s new Chief Technology Officer Sheng Wang. In this episode of The Roadmap, Sheng details her new CTO role at AutoGravity, why it’s important to have a mobile-first strategy, and the company’s tech goals for 2018. Additionally, Sheng talks about the future of the F&I office, where consumers might be “getting stuck” in the online finance process, and how AutoGravity is jumping over those hurdles.
Featuring Sheng Wang, Chief Technology Officer, AutoGravity.
Episode 5: Why Alternative Deal Structures Are Gaining Momentum
Alternative deal structures — in which lenders can offer potential borrowers with multiple finance options in response to a single credit request — are becoming more prominent as borrowers continue to seek instant credit decisions. In this episode of The Roadmap, Scott Hendriks, director of product management for auto originations at Fiserv, discusses how these alternative structures can prove beneficial for both lenders and borrowers, and why these structures are not just for the nonprime audience anymore. Additionally, Hendriks offers insight into how these structures can improve not only service levels, but book-to-look ratios.
Featuring Scott Hendriks, Director of Product Management for Auto Originations at Fiserv.
Episode 4: Cordray Successor Confusion Placed a ‘Cloud’ Over the CFPB
Following the resignation of Consumer Financial Protection Bureau Director Richard Cordray, there has been much confusion surrounding the future of the CFPB and its leadership. Cordray named Leandra English as the agency’s interim head, shortly before President Donald Trump named Office of Management and Budget Director Mick Mulvaney to the position, which ensued chaos. However, on the evening of Nov. 28, amid a battle of who would be the agency’s interim head, U.S. District Judge Timothy Kelly ruled in favor of the White House. In this episode of The Roadmap, Lucy Morris, partner in the Washington, D.C., office of Hudson Cook LLC, offers her insight into the CFPB leadership chaos, and advice for lenders in the short and long term. Morris also voices her opinion on who could be the permanent replacement for Cordray, and in what ways the CFPB could potentially change — or not change — under new leadership.
Featuring Lucy Morris, Partner in the Washington, D.C. office of Hudson Cook LLC.
Episode 3: Managing Success Based on Service, Not Marketshare
Security Service Federal Credit Union attributes its No. 1 rankings in the annual Auto Finance Performance report to managing success by focusing on dealer and member service, and not by trying to gain marketshare. In this episode of The Roadmap, Charles Goss, executive vice president and chief lending officer at Security Service, details the credit union’s secret to success, how it strives to enhance dealer relationships, and conservative underwriting efforts as the industry heads toward a down cycle.
Featuring Charles Goss, Executive Vice President and Chief Lending Officer at Security Service Federal Credit Union.
Episode 2: Navigating Subprime Auto Credit Risk
Deep-subprime lending has notably expanded in the nonbank auto space, reaching $38.9 billion outstanding as of June. Additionally, subprime auto defaults reached $1.8 billion in June, making up about 80% of all defaults in the market. In this episode of The Roadmap, Michael Vogan, automobile economist in the credit analytics department at Moody’s Analytics, details a presentation he developed on subprime auto credit, including how heightened competition and better analytical capabilities for risk modeling and repossession activity have contributed to the rise in defaults. Vogan also offers insight into where subprime loans are most concentrated geographically, how the recent hurricanes are expected to affect the auto finance market, and why he thinks payment problems are a function of underwriting policy.
Featuring Michael Vogan, Automobile Economist in the Credit Analytics Department at Moody’s Analytics.
Episode 1: Where’s the End for Depreciating Used-Car Values?
Industry leaders continue to predict where the end of the line will be for declining used-car values, but what can lenders do to prepare in the meantime? In this episode of The Roadmap, Chuck Jones, head of national indirect lending at SunTrust Banks, shares his “proactive” approach to remaining rational in the market, particularly as delinquencies rise. Jones also offers a peek into how bullish SunTrust will be with new and used financing next year. In 2014, Jones joined SunTrust Banks — which had $9.8 billion in outstandings at yearend 2016, according to Big Wheels Auto Finance 2017 — to provide strategic direction, execution, and outcomes for the business.
Featuring Chuck Jones, Head of National Indirect Lending at SunTrust Banks.