Arivo Acceptance breaks into direct refinance

Subprime lender Arivo Acceptance has launched direct refinancing to expand its offering to more subprime and nonprime borrowers. West Valley City, Utah-based Arivo offered direct refinancing as a beta program in June 2022 by alerting consumers by mail, Landon Starr, chief risk and information officer at Arivo , told Auto Finance News , noting he now considers the product out of beta. “We're still relatively low volume and waiting for the right time to expand our footprint within the marketplace,” Starr said. “It’s an exciting framework because of how much volume that we can assess and the prospect volume, so we're not [yet] fully utilizing the availability of the market.” Arivo is waiting to make sure capital, growth and operational standpoints are aligned before tapping into the full refinance market, he said, noting he thinks the program can grow as large as the lender’s existing indirect origination volume. Arivo provides targeted consumers with refinance savings calculated on a month-over-month basis, which has driven up consumer response rates, Starr said. The lender prescreens potential customers using machine-learning algorithms to know what their existing loan rates are and assess the collateral. [caption id="attachment_57333406" align="alignnone" width="2560"] © Can Stock Photo / Apriori [/caption] Mobile-first experience Once the consumer decides to refinance with Arivo, they are directed to a mobile portal through a QR code where they can upload all necessary documents and initiate the refinance process in less than 10 minutes, he said. “Everything is very mobile-first, which is what's really helped us smooth and improve the user experience and minimize the amount of time that it takes for a consumer to be able to save money on refinancing their auto loan,” Starr said. “The tech - forward and user experience mechanisms have helped us cultivate and curate an environment with minimal friction to the consumer to help make access to more affordable rates available to them in a quicker way.” Implementing direct refinancing positions Arivo to grow originations as consumers seek relief from interest rate hikes and look to refinance their vehicles at lower rates, he said, noting that Arivo is preparing for that growth. “Six to 12 months from now, us having this [program] in place is going to be a massive opportunity,” Starr said. Arivo Acceptance has a managed portfolio of around $520 million, he said. Auto Finance Summit East, Auto Finance News’ new spring event, kicks off May 10-12 at the JW Marriott Nashville featuring a fireside chat with Peter Muriungi, CEO of Chase Auto. Visit autofinance.live/afs-east .

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