Automated approval rates on indirect auto loans are up at Gesa Credit Union after the $4 billion financial institution last month implemented fintech Scienaptic’s credit-decisioning technology, which is driven by artificial intelligence (AI).
Scienaptic’s automated credit platform has led to auto-approval on 50% of indirect auto loan applications at the Richland, Wash.-based Gesa, and has driven up overall approvals by 20%, Eric Steinhoff, executive vice president of client impact at Scienaptic, told Auto Finance News. Automated approvals have doubled since launching the platform in August, he noted.
New York-based Scienaptic’s automation technology is designed to improve underwriting decisions using custom AI models that predict member creditworthiness and ability to repay. Scienaptic works with banks, credit unions, fintechs and other lenders, including Automobile Acceptance Corporation and powersports lender American Cycle Finance.
The technology includes a custom credit risk model built on Gesa’s auto portfolio performance history, Steinhoff said. “By training our AI models on Gesa’s historical loan performance, we can easily replicate approvals that Gesa would have made anyway, without requiring any human intervention.” The technology is also able to incorporate alternative data sets, such as macroeconomic data.
The platform adds to the credit union’s efforts to offer products that are convenient, economical and desirable to members through smart credit decision-making, said Kevin Willborn, vice president of consumer lending at Gesa. “Deploying Scienaptic’s AI-powered credit-decisioning platform is another step of our journey to rethinking the customer experience and enhance our credit-decisioning capabilities,” he said in a statement.
Automation and AI are becoming more prevalent in the auto finance industry as lenders look to streamline their operations. Wells Fargo Auto, for example, continues to increase automation with its loan-approval process, efforts which began in the fourth quarter of 2020. Fintechs including Blend Labs and Lender Compliance Technologies increased auto finance automation for underwriting and regulatory compliance, respectively.
Gesa Credit Union employs more than 500 people in 18 branch locations and serves more than 255,000 members.
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