Alternative Data | Auto Finance News | Auto Finance News

Global Lending Services revamps decisioning software

Global Lending Services’s Chief Executive Steve Thibodeau is rethinking the way the subprime lender decisions applications as the company ramps up its direct lending business. “The entire decisioning framework must be turned on its head, with the purpose of first solving for the needs of the consumer,” Thibodeau told Auto Finance News. To that end, […]

Fraud analytics, alt-data reduce risk for nonprime lenders

The ability to identify risk as early as possible in the loan origination process can improve portfolio performance, and lenders focused on nonprime segments have better resources than ever before to reduce loan risk. Early identification of high-risk borrowers can reduce or potentially eliminate defaults. Fraud analytics and alternative credit data — which provides a […]

Regulation Lags Behind Alt-Data Usage

LAS VEGAS – Lenders that use alternative data for underwriting should tread carefully until regulation has a chance to catch up, said executives at a securitization conference yesterday. “We want to support business and don’t want to stifle innovation, but we have to move in a measured way,” Rostin Behnam, commissioner of the Commodity Futures […]

LOS Provider Launcher Solutions Adds Alt Data From LexisNexis

Technology startup Launcher Solutions inked a deal last week to integrate alternative data from LexisNexis Risk Solutions into its loan-origination system geared for subprime lenders. Alternative data plays a significant role in auto loan underwriting, especially in the subprime sector where credit bureau profiles may be thin, Launcher Solutions President Nikh Nath told Auto Finance […]

Are Auto Lenders Overlooking Creditworthy Consumers?

The past 10 years generated a lot of change in the consumer credit industry. Repercussions of the financial crisis, new regulations, and expanding sources of credit such as marketplace lending, have left many creditworthy individuals underrepresented or misrepresented by traditional scoring models. Conventional scores offer only a partial view of consumer behavior and its associated […]

Tricolor Adds AI to Expand Risk Scoring Capabilities

Used-car retailer Tricolor, working with partner Phenx Machine Learning Technologies, said this week that it is adding artificial intelligence to its underwriting system. The strategic partnership is a move for Tricolor to increase financial inclusion for its buy-here-pay-here consumers, Chief Executive Daniel Chu told Auto Finance News. By leveraging Phenx’s AI-enabled algorithm, Tricolor can automatically identify […]
Page 1 of 212 »