Listen: Weekly Wrap discussion on data management amid digital shift

Auto lenders are rethinking how they manage the influx of data coming down the pike as the industry increasingly shifts to digital channels. Flagship Credit Acceptance and GM Financial , for example, are using technological advancements to collect and organize data in order to maintain transparency with regulators and consumers on their platforms. Lenders are also leveraging technology to identify consumer complaints filed with the Consumer Financial Protection Bureau to improve their overall business practices. Chase Auto Chief Executive Peter Muriungi , too, said the lender is focused on digitization in the changing auto finance industry following the launch of Chase Finance and Drive in January, and its private-label financing arrangement with Fisker Automotive . In this episode of the Weekly Wrap, Auto Finance News Deputy Editor Amanda Harris and Associate Editor Whitney McDonald discuss last week’s top stories, and what’s to come in the week ahead. Subscribe to The Roadmap Podcast on iTunes , Spotify , or download the episode. Auto Finance Innovation Summit, the premier event for technology in auto finance, returns April 25-26 in San Diego. The event will showcase today’s technology and tomorrow’s innovation-driven opportunities to position your company for success in this fast-paced digital era. To learn more about the 2022 event and register, visit www.AutoFinanceInnovation.com Video Transcript: Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain . Amanda Harris 00:10 Hello everyone and welcome to the roadmap from auto finance news since 1996, the nation's leading newsletter on automotive lending and leasing. It's Monday March 28. And I'm Amanda Harris joined by Whitney McDonald. This is our weekly wrap on what happened in auto finance for the week ending March 25 2022. Rivian automotive Inc stock fell 73% due to downgrades production snags misdelivery targets and overpricing EV. Automakers chief financial officer Claire McDonough, is tasked with winning back the confidence of investors who bet on her and Rivian. In order to do so she plans on getting new vehicles to market building additional capacity in hopes of the stock prices taking care of itself. She said In the meantime, the startup is expected to burn through $14 billion in the next two years and is anticipating several more years before revenue offset spending. Moving on to vehicle values in the past the MSRP set the ceiling for values. And now the MSRP or the Manufacturer's Suggested Retail Price sets the floor. So according to Kelley Blue Book, the average sticker price is now $41,500 and increase one was 10% from two years ago, when the price set at $37,800. Factors contributing to elevate vehicles continued to be supply chain issues cost of production and in some cases padding profits. I experienced this myself recently, when I looked for some new vehicles and found they were adding a couple 1000 Just a markup other dealerships pretty much because again, so it's been pretty challenging. Last week, we also posted our APR magazine and auto finance news sat down with Chase auto chief executive Peter Moringa to discuss the lenders latest moves, including his launch of Chase finance and drive in January, and his private label financing arrangement with Evie manufacturer vice for automotive. Along with those initiatives that kicked off 2022 We're going also discussed Chase autos path toward digitization, including its efforts to offer a digital into in car buying experience through financing drive and his partnerships with other Evie manufacturers including reading and speaking of digitization, or April magazine features focused on how lenders are leaning into technology advancements in the industry for data management. Whitney, can you share some of the takeaways from the April magazine content?Whitney McDonald 02:43 Yeah, of course, the shift for digitization is progressing very quickly in the auto industry. And we saw that both at AXA and CVA live earlier this month. So for one of our features that we dove into lenders, including Chase, auto flagship credit, acceptance, and GM Financial, they are all using the newest up and coming tech to manage their data systems in a way that they really never could before. So technology is being used as a tool to enhance and customer service, and better understand the data, the data that they're analyzing on their platform so that they have a better understanding of who their customers are and what their needs and expectations are. Of course, with new technology, lenders have a little bit more risk on their hands. So they need to ensure that they're maintaining compliance along the way. Chase ATO, for example, is keeping tabs on its data use through documentation and ensuring that if a regulator asks, they can always answer what data is being collected and what is being used for specifically, another issue with more technology is the need for data scientists. And like all industries today, kind of across the board, people are really hard to find. So lenders are getting pretty creative in order to fill tech positions. GM Financial, has kind of switched its strategy to look for people who are willing to learn new skills, rather than hiring those who already have those desired skill sets. So kind of this balancing act. We have all this technology available, and we're using it but we also need data analysts, data analysts, excuse me in order to go through those data sets and effectively use them for the benefit of the company so tight at hand, but we need more people in order to do that within the industry. So that was kind of our first first feature that we dove into for April.Amanda Harris 04:48 Great. I think you also covered how lenders are using consumer complaints as a resource kind of interesting. So what were some of those takeaways?Whitney McDonald 04:58 Yes, very much. Interesting. This was a session that I sat in on at CBA. Live earlier this month, the CFPB, and lenders discussed how consumer complaints aren't necessarily a bad thing, and can be used to better your practices across the board. So the CFPB collects complaint data, and it's available as a resource for lenders to benchmark themselves against their competition. It's an educational tool on their site that's updated daily. And it's also used to see where regulations need to be put in place. So a tool for all of those things on the auto side for the start of 2022 Auto debt collection complaints in January and February surpassed 2021 figures. Last year in 2021, auto debt collection complaints were up 73% year over year. So we're already tracking to have that same influx of complaints year over year for this year. Lenders however, have learned to take those consumer complaints and learn from what consumers are complaining about and where the improvements need to be made in order to avoid those repeat complaints. USAA for example, they believe that transparency and trust is critical in the customer relationship. And through managing its complaints and prioritizing responses, they've been able to better serve future customers and those that they already have on their platform, kind of coming full circle and linking back to digital digitization. lenders have implemented artificial intelligence throughout their platforms through originations and onboarding, but now even to monitor those complaints. So the AI helps tart kind of flag those issues before they even surface so that you can be getting less complaints down the road and addressing those issues before they get to the CFPB. So lots going on with digitization and improving customer experience. Now that tech allows all of that, and I'm sure that we're going to be seeing more tech surface throughout this year. But yeah, very interesting sessions and commentary from both CBA live and AFSA that we were able to kind of take a deeper dive into. Amanda Harris 07:25 Perfect, yeah, and we know that consumers complain. So it's very interesting how they're able to use that in a strategic way, you know, to their vantage, so, great features. The magazine issue, of course, is also available online. So you can read those features in their full as well as all of our other great magazine content now. We're also going to be providing a print copy at the upcoming auto finance risk summit and auto finance Innovation Summit on April 25 and 26th. At the Intercontinental in San Diego, is coming up in less than a month now. So we hope to see you all there you can still register if you haven't already. And that about does it for episode today. They eat for joining us on the roadmap and follow us on Twitter and LinkedIn. And we'll see you online autofinancenew.net and here next time

Listen: Weekly Wrap discussion on data management amid digital shift

Auto lenders use technology to identify complaints, manage data

Tesla adds $84 billion to valuation on stock-split signal

Oregon credit union takes Washington market by storm

Related Posts

Global Lending Services expanding dealer pricing tool

The tax return looked real; that was the point

Kunes Auto’s first CTO aims to unify auto, RV technology operations

Synthetic identity: when the borrower doesn’t exist

Oregon credit union takes Washington market by storm

Stay Informed with Our Newsletters

The Roadmap Podcast

SPONSORED

Why credit unions give dealers an edge in today’s auto market

Driving better decision-making across auto finance operations with SAS

Auto finance’s first line of defense: Raising the standard in integrated software partnerships and data strategy

Retrieve your password