Lobel Financial teamed up with FactorTrust to use alternative data in a new, in-house custom scorecard, the companies announced today.
“We looked closely at what FactorTrust could offer and decided that its many attributes — delivered in real-time — would help us best reach our goal of establishing enhanced segmentation for the development of our new internal scorecard,” Harvey Lobel, president of Lobel Financial, said in a company press release.
The Anaheim, Calif.-based indirect subprime lender has also been bolstering its data initiatives this year. Back in March, Remarketing Manager Sheila Tedesco told Auto Finance News that it collected demographic data to customize consumer’s purchases. By looking at city demographics, the lender has had success with loans that would have normally been considered “too risky,” Tedesco said.
Additionally, Lobel Financial stays short on its loan terms — going as low as 12 months — to lower the risk on its portfolio, and that strategy intersects with it demographic data when lending to millennials, Tedesco explained.
