A frank discussion with senior executives from some of the nation's largest financiers. Panelists: <ul> <li>Chuck Berend, Director of U.S. Auto Lending, BBVA Compass</li> <li>Jerry Bowen, Executive Vice President & Head of Dealer Relationships & Product, Wells Fargo Auto</li> <li>Jim DeTrude, Vice President, NMAC Sales & Marketing, Nissan Motor Acceptance Corp.</li> <li>Marc Womack, Chief Operating Officer, TD Auto Finance</li> </ul> [toggle title="TRANSCRIPT"] <div class="transcript-scroll-box"> 00:07 You're good. You 00:08 can do your survey, chop. 00:13 All right, so we've got 00:15 here from 00:17 my immediate left. 00:19 Chuck Berry from BBVA. Jerry going Good to see you, Jerry. Too true from Nissan. And of course Mark Womack from TD auto. 00:33 If you just quickly got us a brief introduction to your shops just so everybody kind of knows what, what where you're where you're coming from. So chocolaty. Just 00:46 give a quick intro Archer the BBVA Compass operates in the south from Florida to California zone seven states. 00:55 Entirely indirect with very small direct shop 00:59 are five Concentration is really kind of near prime a prime. We don't run and we probably concentrate a little bit new, unused 01:10 space. 01:11 Okay, Jared, 01:13 thank you for having me here. JJ. So Wells Fargo auto we operate actually the only state that we're in now is Alaska. involved both on the indirect side as well as on the commercial side. So national footprint and revenue from martial law. Okay, good, 01:27 Jim. Well, thanks for having us. Well, sure. I'm the 01:31 lone cat, sage. We support Nissan Infiniti dealers across the US portfolios roughly 16,000,000,050 of that on the commercial or on the consumer side, tack on the commercial side. I have my responsibilities in the sense of what people organizations 01:49 good are chasing. Thanks for being here. The Nigerian National winner 01:54 of both retail and commercial 01:57 predominantly kind of Near Ramallah, don't forget to 02:03 write permission. 02:04 Right. And just to the size of the portfolio Jim shared his 02:11 Chuck your last about three ish going through Forgive me that three, three and a half Jerry where you switch to 02:20 bleeding by roughly 4550 range consumer brand 02:27 and marvelous person 27 Okay, great, great. So now everyone knows where I'd like for us to go and kind of down the line in for each of you to share your perspectives on 02:43 what's happening 02:45 sort of today in terms of origination and credit performance. What do you see from your 02:52 vantage points to each of you come from slightly different vantage points? 02:57 Mark, Your Honor, maybe kick it off. 03:00 Sure, I mean, from an origination standpoint, our market is 03:04 competitive in three fragments, which means it's very, very competitive. I think we have over the year in segments grown substantially over segments not so much. 03:16 And I think that will prove in the way that we're thinking about 03:21 sharing things going forward will be in terms of credit performance. I mean, we've been like others we've seen kind of technical difficulty, but again, nothing outside of what we expect 03:34 to accomplish that dress 03:36 for a firm, but 03:39 I think the competition is not going anywhere. And it just really bubbles up from a lot of different places and across markets. It's it's very, very different. You can see a lot of our friends here on stage in some markets and then some that are not necessarily your constituents and other words, 03:57 addressing expenses, okay. 03:58 So bear in When you're you're kind of right now, 04:01 thinking about originations growth, 04:03 like I mentioned some of the ways you're, you're growing and some some areas. What are some examples of areas where you're seeing that growth? 04:12 Well, I'm gonna tell you where a lot of the sales are, because final states so you know, it's a California, Texas, Florida, New York 04:20 see the growth in those markets? But you know, I think there's a lot of pockets. We're missing 04:27 significance, obviously, certainly in terms of 04:31 some of the parts of our business that are that are going to increase and I think a lot of it for us, is focused on the partnership with customers. 04:39 deepening relationship with customers American visitors. 04:42 Gen. Y would describe it for the solid infinity, stable ish, maybe 04:51 not sure that's in the dictionary, but we could put it in there for 04:54 the I came from the OEM if we make things 05:00 On the stable side of portfolio, it's really performing well. I think similar to your previous conversation, we took those similar steps in 17. And we've continued that this year. Like those are, the values of down terms are down. So 05:18 we feel really good about the 05:20 about the portfolio that we carry into fiscal year 19. On the the issue of staples, the competitive pressures, not being fed at the 05:30 cost of contract. 05:32 Not very excited about some of the increases that we're seeing on the materials decide that's becoming part of the manufacturers challenge. So there's a cost of ownership dynamic that we're that we're trying to sort out right now. But we're very excited about what's coming forward from a brand point of view. 05:56 So that interest is starting to mean something to us. Have you seen the demand for levels 06:03 to the last couple 06:04 years? I think also with this dealer facing pressure on margins on sales margins, and so they're they're trying to find ways to substitute where they were they were drawn 06:16 that they're looking for to stay 06:18 in business, given the fact that in a given price in particular seemed to be more precious anymore. 06:26 You see a lot of the dealers now strong period doorknobs just because they typically have a little bit of margin on paper. So, but I the alternatives can't change when the new equation is changed a lot of the Postal 06:40 Service 06:42 Jim Mattis is kind of the the 06:46 captain perspective on this. 06:49 You know, what's your, you know, how concerned are you for example, about dealer profitability? Are you do you see that as well or is that You know, we're different enough 07:04 to to say that I agree with everything that just is specific to to dealers that we work with, you know, profit remains a concern, I would say optimistically at a 2%, return on setup. That's a lot of work for, and a lot of investment for mobile return. So there's a lot of focus on that front end gross is is negligible. It puts a tremendous pressure on the economic office for both of them to deliver as well as the experience that our consumers 07:38 See, there can be, there can be a 07:41 detriment, a very detrimental effect to the consumer, based on that pressure. So there's a lot of interest in markup. There's a lot of cash in the transaction, and there's pressure when insurance products. So there's a lot that it's happening in the f&i 07:55 office because of 07:56 what's not happening on the front side. The So that's the market. So that's the model aging. And as you move through the old model model, there's opportunities to pick up rows. Or we also see if any one of you touched on the floor plan is yet it's it has gone from from a conversation ever head to one that we have all the time. The divisions have been very purposeful with a sustainable profit growth objective to pull inventories back. So the average Nissan Dealer, once a month in Calgary team are 17. Their flooring expenses roughly 1000 to 08:36 1500 is not significant. 08:40 But the good news that was anticipated with the reduction in inventory levels has been 08:45 completely absorbed by the cost of funding 08:47 back in Florence. So we have those conversations all the time with our dealers. I girl sake I love for like divisional partners to make way more pressure in the system based on how they're investing Instead of a higher degree or higher percentage of spend the cash makes it more difficult to compete as the capital. But it adds to that dynamic of the profit that they're trying to realize. On the front side. The 09:14 again, I think the bigger the economic conspiracy 09:16 almost exclusively. 09:19 So you you, are you expecting your penetration rate to dip next year, 09:27 though we've experienced that issue? So, when when I was director of sales, I used to say insightful things like tier one Tuesday. Or if you say no, we can't grow because I would walk 09:41 around the credit 09:43 Leadership Center, they would ask 09:47 and so we had a lot of pressure in the system when the volume of both 09:52 our arms around portfolio performance bass profit, but also individuals to help them achieve their objectives. Sustainable profitability is an objective coming from psychology or CEO is a much different dynamic. So it was we tried to address some of the issues that we had in the portfolio. As we looked at our pricing as we looked at our dealer relationships, by design, we call and backup and this year, we're now instead of charging in the 60s for the mid 50s, in terms of total penetration we saw inside sufficiently heteronormativity primarily because of race. So I think we've made those changes this year. I'd like to see pengaruh forward, I want the volume in the portfolio. I want the owners attention and the benefits that we're seeing from that larger portfolio. 10:40 And I really think the new models are going to help us it's 10:42 going to help us shift away again, for me cash incentive strategy, which is detrimental in so many ways, certainly residual outside transactions, restaurants and medium. But yeah, I see us working to grow hair, even in the market and fingers 16 516 seven That's what we expect. Whereas for us, it's about market share, right? It's division of market share. It's not just tip, and their, 11:06 their objectives are to grow. 11:09 It's the model of auctions and some of the changes that we've made in fractures. So I do see pen elevating, nonsignificantly, not to the detriment of what we have in the portfolio, but it's we have a plan to grow and maintain to sustain. Right. 11:25 So Mark your, I mean, take us through the, kind of 11:30 give it a rating, the, I mean, these are all credit risks that we're talking about here. So on a scale of one to 1010, being the most, you know, dire 11:44 situation, where's where does this whole range 11:50 from your purse in your perspective, 11:51 and then kind of what does this mean for for credit policies? I mean, is it Are you already in a boat have kind of revision or reassessment or resist sort of a 2019. 12:09 So in terms of fuel profitability, 12:11 yes. So I think, you know, it was 12:13 interesting to me, I was at another industry conference and speaking to a dealer, a very large store. And he put a real fine point out for me. And what he said was, is that dealers have last six, seven years been building the business plans on historical rates. So what's happening now at the micro level is all these things which are really trying to look at their entire business models and redefine them. And I think that that creates challenges and opportunities for us. I think, you know, as the interest rates continue to rise on the commercial side, it is really accelerated the conversations we've talked about this last night with Oscar churros, lots of people that really explored the commercial learning something on the retail side, we're constantly looking at the edges of our box and saying, Okay, how are we thinking about this? You know, we're doing something 90% of the time, maybe we should look at automating this to do so we're constantly looking at how do we increase efficiency, and really retain flexibility, so that whatever direction the dealership can go, we're going to be there within our respective divisions. So we think that's a constant thought process, but I think it's been that kind of put it in a much finer point for me, just really thinking about not only 13:36 the dealer's 13:39 portfolio, 13:40 but the ones that were looking at before. 13:45 So this is kind of like your, is your number one keeping you up at night? 13:51 No, I wouldn't say that. It's my number 13:52 one. I think it was actually it was more opportunity than this challenge. And I think that as we continue to Because we're one of those ones that are looking at growth next year. And I think we're, 14:07 we're comfortable in our space, but we obviously want to add volume and profitability. So, as we look at these things, I think just expanded our commercial offerings historically, we've only offered them pretty much peace of the Mississippi. Now we've expanded those. 14:25 As we looked at this weekend, opportunistic 14:28 is concerned with his attempt. 14:32 Okay. I want to touch on something that Jim started talking about it I wanted to ask that bring them to the first to generate if that's okay. 14:41 your portfolio and you've got a mix of a prime non prime unlike Jim and and more. 14:52 So the cost of ownership issue that Jim was mentioning 14:58 how to implement concerned are you around cost of ownership and and that as a factor 15:08 as a sort of negative drag factor for origination to force company? 15:15 Well, the way I was founded the juniors, I think we're looking at not just the cost of ownership terms, but kind of overall, what's the consumers ability to pay? And 15:27 when I say that, 15:28 not just can they pay the car loan, because, you know, we've 15:33 established an arrow 15:34 to say, look, it's really not good scenario. If we make a loan to a consumer, and they get it. Let's say we're money good on the car, but it causes them to fall or get behind on other debts, pay the mortgage and rent or everything. So, you know, we've got, you know, we've kind of expanded our focus to make sure that as we're entering into transactions proportional portronics factor knowledge was the cause. The vehicle but how does this new portal fit in the overall consumer ability to pay and service on their desk? Because we don't think it's a good scenario if, let's just say we make a call and we feel like we can get the loan back, whether it be from collections or vehicles and good cloud position, but yet it triggers waterfall negative consequences so 16:18 far. So 16:20 and I'm not, I'm not 16:21 so sure that the industry is always thought. I think there's there's been a little bit of a bias to say if I'm ever alone here on this vehicle, this flammable I'm not going to get. 16:31 And so if we factor in not only just was the total cost of ownership in people, because it's kind of more expensive. We talked about this a little bit earlier. If you look at new vehicle prices today, I think the average transaction price comes over $35,000. So one of the challenges I think the industry faces particularly on the vehicle side is new vehicle prices have increased at a rate faster than the average household was for sure you don't have so for seven years and you know, most you Consumer households are still a pain in money. And so, but you're not really seeing 17:04 an effective effect from 17:06 that incredible performance. So 17:09 that doesn't seem to apply some sort of discount general. 17:13 Well, you know, but you also 17:14 gotta keep in mind, this is a you, if you go back to 2000 to 2011, what was 17:19 going on around 17:20 10%? Right now unemployment is down 4% of baby boomers, consumer household, discretionary income has improved. We've seen the consumers, it those who own real estate now you can refer 17:32 back in a better position to 17:34 real estate and also their confidence to other hands and there's a disability attorneys out there. So they've got the ability to create income. 17:43 And I will tell you, as we think about affordability, 17:46 where we started 17:46 getting to where I can accomplish it, when we start to see term stretching out at four months, we've even seen some people go out beyond any four months. And I'm just not sure how that's a good good outcome for the consumer. I'm not talking about the pictures are good outcome because no one wants to be able to get around to get the consumer guy period sooner than that. And too often if they are not extended, they do get the consumer back with consumers upside down on the vehicle, which makes it pretty tough option for the table and for the letter shop to get on the sidelines. 18:16 Right, grab this upside down dynamic. Jared touching on sharp 18:23 what's your What are we What Are we recording? What do we make of woody woody? What's your thoughts on? I think 18:29 it's the easiest way to see the detrimental effect, right? Go when you get down to a transaction level, how you want to pay on the dress to say, hey, I want to pay for multiple loans, right? I want to do anonymous letters to the 96 columns. I can tell you that our bank in Europe those hundred paying off loans, 18:48 which we understand that's what we do. 18:52 But in the day it is that 805 Gold customer with lots of income. You know, what do you care how you had to do the transaction. And that's what we get from the dealer. So let's we'll say, hey, this little guy under strict 84 month loans to these kinds of situations or others, you know, they've got cash in the deal. 19:12 You care. That makes it a little more challenging for us, especially because we can make that decision and then somebody else to the right. 19:22 But it is the one thing that concerns us all the things that we can do position or so. I just don't like financing. The last part is this. And so the negative equity thing is is is one of the challenges that we focus on a lot. 19:40 On a scale of one to 10. It's not 10. But it is it is a bigger topic for me 19:47 to talk back in PGI four, because I think that hasn't it hasn't 19:55 been that Mack dealing with 19:57 negative equity. 20:00 Hopefully well. 20:03 Okay. 20:04 Well, short answers. Yeah, that's right. 20:07 Though I think we've done up because again, fully was performing well, we don't have remarkably, I think, is there such short term pressure on the deal, to deliver to deliver volume to deliver return on sell that they tend to vicious at times into uncomfortable places, whether it's creditworthiness of the buyer or an ad for launch option, right. And we're not getting that from viewers and I'm getting that for division. It's very limited. What we do, we've asked about lease and moving from a 36 39 million to 48. In both rounds of say aggressively pushed back, because they don't want the customer to be in that position. they've dealt with negative equity. They feel like they move through most of those issues, but 20:52 it's still there. 20:54 But But they've been a voice of longer term vision on Long term 21:01 as it is to be positive. Have you ever heard this from other OEMs gangsters 21:04 as well? And what's your last 21:09 service? And, you know, Mark, if, if, when you're thinking long 21:17 term? 21:21 Bottom line, what's your expectation for 2019? Do you think average terms come in and or not? And what's your Why don't you say? 21:32 I'm hoping that they do. 21:35 Right? I understood the problems up here. Ah, I get concerned a little bit, you start seeing that numbers start to take off and that was a four month terms are going up? I think we've seen a little bit and I think this is another one of these dynamics is really driven by the internal policies that actually exist is that some of the negative equity account has been mitigated by some of the cash that has been out there. to leverage you have to try to the setback goes away, and the pressure will start to increase. So I think it's, it's really going to be dependent on a number of things that 22:13 the dealers are in trouble over levered return 22:15 every car. 22:17 And I think it comes back to the point that you mentioned before around sharing who was incentives when the pressure the economic is going to continue to increase because if the cash goes away, it becomes structured in a very different way. The other departments really going to have to deal with the day in terms of profit, because the transparency 22:39 doesn't ask 22:41 the question here about the business risk 22:46 that you face of consumer space. The question is really around a specific scenario, but I wanted to 22:55 ask the question or presented question on a different planet. So I asked our esteemed panelists to rank order. They're how they feel about particular aspects of risk today, so I'm gonna share the results with you guys. Tell me what you think. Alright, so the the top three, there were 10 risk factors of various types. The top three, were 23:27 number one headline risk to 23:29 get to step 23:30 number two competitive risk and number three technologies. 23:36 The three lowest risk factors in order of lowest minimum order the 23:41 lowest discurso 23:42 liquidity risk, brand risk and collateral collateral This 23:49 is that surprising part of that surprises each other. Probably 23:54 headline risk is number one, I think will last the recent report All right. 24:02 People started aggressively looking at their operation with the idea that there were more eyeballs and what they were doing then 24:09 there never been before. It's 24:10 just a lender. And we spent a 24:12 lot of time a lot of effort doing things that really mitigating our ability to get caught up in something really, really tough. That's that's my perspective on it. But 24:21 I'm also a smaller lender wouldn't make the 24:23 headlines. You know, Jerry probably feels very, very different than 24:30 what you're talking about. 24:33 Nobody knows Jerry. 24:38 What do you guys think? So, what about on the other side? 24:41 Right, so I think liquidity 24:43 risk is probably not surprisingly. Okay. What about collateral? 24:51 Does that surprise Jim Does that surprise you a little What? Why and why isn't Why did you break that pretty much. I don't know. 25:01 I don't know if I ranked it low or afraid, right, though it was higher. 25:04 So that's a little different. Take that I can check it out now. Yeah. And you and I have exchanged emails. I'm not sure I understood the assignment from the beginning. Okay. 25:16 Well, that was probably 25:19 the But no, I when I look at how 25:22 how our off lease portfolio has performed this year, specifically on the lease, we're seeing recovery time rather than base rate. So it's been a really good dynamic shooter. And that's, that was what is what I was thinking when I can move that it's not being volatile. I am surprised with the headline. I'm not surprised with technology. 25:46 Anytime, 25:47 what good, 25:48 what we're moving from a retail process. That is so crazy manual in many internships. To one where the transaction will take place at home, and they will see consumers and delivery and, and I feel that as as an industry, we see it and we know where we're heading but path can be messy along the way. And there will be starts and stops and relationships and failures and success. So I think there's a lot in the technology space as we move from, from any industry that used to define their traffic based on who they saw on Saturday, to now better understanding the dynamic for tier three websites and where they have fall off in getting consumer complete pre approval or full transaction. So that's, I think there's so much going on there as well. I felt that he was volatile, not in a negative way, 26:47 rather, in very much in an exciting way. 26:49 The other one that I that I that I thought we would see is on the people side. And as we grow as an industry are we maintaining and developing A generation of talent for where the industry is going, or are we stuck a bit in the more traditional from consumer to collection to feel to type 27:11 type of career path? So I thought 27:14 I thought that that may surface I was not surprised with technology. 27:19 So the leading to this technology, the points that you're raising your a couple questions from the audience related to this. They're very extensive. I think probably the best way to maybe, Mark if you don't mind me kind of directing the speaker first to have an imager kind of chime in afterwards. 27:48 There's a question regarding your How do you address online marketing 27:56 and in this sort of shift on marketing And then further, just sort of broadly, the number of digital retail solutions coming to market for dealers to integrate, what are the implications for lenders market want to kind of talk to this issue for? 28:20 You know, we talk about ranking frames. And so this is something that keeps me up a lot is and I guess I would couch it, because the questions is kind of a thought from Patrick and his questions, but I characterize it as kind of the opportunity cost of that technology. And, and, and the opportunity cost of not being able to I think that Jim said it really well around the town, to be able to leverage information to address the needs of the channels as they go forward. Some of the channels direct Weather Channel is the dealer who's changing their customer experience. How is technology played a role in that. And and how do we make sure that we're not referencing, because we're using some kind of antiquated technology stack that doesn't enable us to do that. So. So I think the thing that I think about all the time is, is looking at all of these changes that are out there. And all of them are happening at the same time. It's been tense, again, with with the Steelers, changing their models to address customer feedback concerns and how to maintain flexibility to be able to do that and leveraging technology, information nation, a variety of practices is part of 29:42 so can you give an example from one strategy that you've kind of gotten in place is addresses? Really? 29:50 Yeah, 29:51 I think that you know, 29:52 we just recently got JD Power from one of the things that they say increase data instructions and the means that the vendors communicate to teams. And you know, it's not considered simplistic example, but I do understand that but the point is, you don't really care about guys coming in with a dozen doughnuts. You know, that's not really what very interested in doing it's how 30:16 can you be the way that I want 30:19 to help me 30:20 solve any issues that are coming up behind your profit. And so whether that's texting with emails or that's platforms that they can log into communicating 30:32 it's the flexibility to 30:34 deliver information in real time and empowering people that are talking. So that's, that's one of the things that I think about, think about investing in tools that allow or for folks to call 30:49 Jared or so homed in on the dealer relationship. So where are they struggling? And obviously from a technical standpoint, you can kind of what are the Woody what as well as have to do before them? 31:03 Well, first I would say that technology at the top was not a surprise to me that's at the top of my skin. But I think part of that is because look, it's it's, it's a little confused. We kind of think about technology and we think about technology and in terms of what we do invest in technology to help people work for us people are fashion efficient and productive in what they do. So customers. And then we also have to think about which technological advancements we need to engage our customers because our customers are now changing the way they want to be. 31:36 And so when I'm talking to you, the number one issue that was raised concern that 31:41 they have right 31:42 now is how do we do relationship and digital images because most dealerships not a lot of issues are built their business, on being in all relationships and so of course the vehicle is feminine, and every vehicle well that was consumed today. This is 1111 Four times five years ago, they used to come four times. So when that consumer comes to the store, think the dealer understands that he or she got one shot to get one of them got to create a good experience for them. And they also have to figure out how am I going to gauge that consumer now comes in with a lot more information around whether it be the product or process, and they also have a desire for that transaction to go fast. I don't want to spend hours sitting in the dealership. And so you know, I'm not I'm not gonna think that we're going opposite and see the whole world, sit in your living room and buy online and deliver thanks. So people already knew that they could continue to see people still want to go into the dealership and the one touch 32:42 and get in and out of it. 32:45 But what they will use don't use, you know, digital tools that are usable to do their research and they may even take a foreign transaction 32:56 out there used to be highly available 32:58 through the use of mobile apps. Do jumping in earlier this week. So if you don't have a global solution, whatever aspect of your business you're in, you're good to go with us. We take as all of our customers, whether it be auctions, dealerships owners are using mobile apps to access information. And that's the way they expect to be, as well. 33:18 You're talking about this sort of one at one time visit versus four time isn't dynamic. I mean, this has got to sort of raise the stakes between you and the dealer as well. So how does that sort of present itself? How does that how does that what does that have to be transpired? What are the what's the evidence that we've seen that 33:40 so if you think about from the unless we go to the scenario, 33:42 PJ consumer comes to the dealership, 33:45 he or she is probably it's on the recommended lineup, whatever they want, they come in, they're ready to go. So their their expectation is, this just going to be a fast, efficient experience. So from our standpoint, we've got to do everything. We can interact with the dealer to help make the experience fast and systematic because to the dealer, slow is probably good if their lenders are slow responding or asking for additional information, so we need that information for us to be able to make a credit decision, you know, the dealer connects up this is you're creating a bad experience for my customers 34:23 if we have to re document that, and that, again, contributes to a bad experience with a dealer because for the consumer back end, so we're making investments in technology standpoint 34:35 to 34:36 make sure that we can do what we need to do to be able to sort of deal with the customer to help their consumer have a better experience. Now, once the consumers become our customers, well, we got to also be able to make sure we've got technology and solutions in place to allow that consumer and right with us in America, 34:52 then that costs going up or staying the same tree 34:59 going down Someone's got to go down to the beach and I love it here. 35:04 I agreed with the one shot viewership. But that customer has touched the deal of multiple times on multiple times often than the sales consultant. So there's plenty of opportunity for the dealer to get that consumer right before they come into the store. The other thing I want to touch on is the data. 35:30 We have to figure out how to utilize that effectively. It's not 35:34 just the action, through connected car, we're very excited all the driver monitoring information to see not just mileage, but how they break how they accelerate, where they go monetize this user base leasing insurance. So it's not just the technology and maybe that keeps me awake. It's the data. It's the utilization and probably as are More important than any of them is the privacy implications of morals, and how to proactively work with your dealer and with your customers to have access to that data to make a difference 36:14 and saying to us, we have been forecasting, so we can better predict credit losses and one of our goals is really good to wear in by the middle of next year. He's very, very good about our ability to project forward. But probably the bigger thing is to put in place technology that allows us to preserve options. So in this room alone, there's got to be 50 vendors all which Oh would like to sell me something, and they're not all going to be great products was one more on me that I can discern right at the beginning. So what I need to do is make sure I have technology in place that allows me to spread my bets. try things out, see what was real value. And we have spent the last year and a half really investing in our core with origination system. The transition to qualify, really on the basis that it was going to allow us to integrate 37:05 real time with 37:06 lots of different kinds of data vendors and technology partners. We're coming out of that for now so that we're better positioned to try things and see, you know, what is going to two last was going to state. It's not all those things not all that good. If we can try those things out without an imposition, the Agile about it, then we can forget. 37:29 Jheri curl, sir, 37:31 yeah, three goals, I wouldn't count because at first, you know, our customers be successful. We want to help consumers get into vehicles that they can afford as a means of transportation independence for them. And so we want to be able to do what we can. 37:45 For our customer, we want to be able to help them sell vehicles to consumers, to be able to help them successfully grow their businesses. We will continue to invest in the technology platform and different aspects of the spectrum to make us more efficient, but also to But to further enhance, where we think things are going from a digital standpoint, and then I would say got the 38:06 alcohol that respect our portfolio. 38:10 We've spent the last 18 months with a lot of change and transition in our business unit to kind of de risk a lot through that process. And so we think the opportunity is there for us to get back to 38:21 full rights. We 38:23 expect to see that the minimum payment 38:25 periods I can, I 38:26 would say, probably been in that position since January. So this business year is really, really about this business year delivering the 38:34 KPIs now. 38:36 And my focus needs to move from fiscal year 18 to midterm 38:40 plan. So being more strategic is where I start. And in terms of some store specifics, we are a captain with a major success based on the song and infinity retail share. So that's number two is our portfolio, the alpha and the growth of and then three, helping pumping us as and back with the more sort of public retailers on how we move forward with data technology? 39:09 I would say it's it's three things. One is really investing in talent that helps us identify better ways forward, leveraging the second consulting, 39:19 which is investment in tools and 39:23 technologies that help us make those better decisions. And I think the very thing is, for me is your goal is to do a lot more listening to where 39:32 our customers are doing, because 39:34 there's a lot of things that are going on. And I think data will struggle for a lot of the beneficial outcomes that we'll be able to drive if we do that. So that's really 39:47 thanks for so I want to thank, say genetic technologies for sponsoring this session. Before we go. Let's see the little look at the results from this call. So the question is what will be the greatest impediment Your company's profitability in 2019. And by far, the number one is higher interest rates. And surprise. 40:12 No surprise. 40:13 Okay, good. At least 40:14 we have consensus here. Good. Ah, we're gonna take a break now. And that break is sponsored by FiOS. In the exhibit hall. You can grab some coffee, see some of those vendors that Chuck was mentioning. We've there's an innovation track that starts the Jupiter track starting at 1115. Innovation is in Marco one. The nonprime 40:41 tract is in March of 40:42 two and by all means all 40:44 the issues of rousingly fans 40:47 are very powerful. </div> [/toggle]
