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Three Takeaways from the Automotive Intelligence Summit

Alternative data’s impact on the automotive industry is heating up

Last month, DRN’s FinTech team attended the first annual Automotive Intelligence Summit (AIS), where we were also a proud sponsor of the event. The conference centered around technology and its effect on the automotive industry, bringing together professionals within the industry for three days to learn from their peers about the changes in the industry due to innovation and emerging technology. Here are some of our biggest takeaways from the event:

The importance of alternative data

Lenders rely on the internal data they already have to aide them in their collections process; however, most of them are currently facing information overload. There were many conversations in workshops and keynotes that centered around how you have all of the information you need to make right party contact at your fingertips, but the abundance of data makes it harder for you to get you what you need. Many lenders have found that layering in alternative data, such as LPR, is helping them narrow down exactly how they want to make contact and understand their loans better.

Using data to make decisions early in the loan cycle

Many lenders in our peer to peer session focused on the importance of behavior modeling. By layering in data they already have with external data from third party vendors, lenders are able to understand their borrowers better and predict their propensity to skip and/or reinstate the loan. Data can also help lenders identify the risks in their portfolio earlier, allowing them to work with their borrowers to mitigate these risks.

Take more risks

Joanna Sherry, VP of Strategy and Marketing at Southeast Toyota Finance, stated that in a risk adverse industry, the auto finance industry needs to start taking risks in order to continue success. Whether it’s layering in alternative data into the collections process or adopting new technology to help make workflows easier, the auto finance industry needs to start embracing the risks that could potentially turn into effective results.

Data is important to our industry. It helps prevent us from losing revenue and also helps us improve our relationships with borrowers. With the inaugural AIS in the past and as we all settle back into our workflows, I hope you are able to take what we’ve all learned at the conference and make effective changes in to our industry.

About the author:

Jeremiah Wheeler

Jeremiah Wheeler

Jeremiah is the President of the DRN & MVTRAC business units for Motorola Solutions Inc. (NYSE: MSI) leading operations, business development, data collection, government affairs and strategy efforts for the automotive, insurance, retail, and financial services industries. Prior to joining the company more than 11 years ago, Jeremiah led one of the largest repossession companies in the US, with more than 65 Trucks, covering 6 states and also had national coverage with the top 20 auto lenders for recovery services. He serves on three committees for the Receivables Management Association International, three committees for the American Financial Services Association, is an advisory board member for the American Recovery Association and is a founding member of the Auto Intel Council with Cherokee Media Group. He is very involved with numerous other organizations helping to promote legislative activities, fundraising and awareness campaigns. Jeremiah has been married for 20 years, has 2 daughters and enjoys spending time traveling with his family, teaching and mentoring students, mountain biking and most anything outdoors.