Value-Based Pricing Opens New Possibilities for Collections & Recovery
FORT WORTH, TX 10/20/2015 – Digital Recognition Network (DRN) (www.drndata.com) announced the launch of their new Enterprise Solution, a value-based subscription model for all-you-can-eat access to vehicle location data. Auto lenders rely on DRN’s vehicle location data to recover more assets and now they can employ this data across their portfolio of loans for a for more efficient collection practices.
As full balance charge-off losses increase, lenders need to leverage new collections and recovery tactics – that’s where DRN’s vehicle location data comes in.
“As repossession rates continue their steady growth, charge-off rates are rising to the point that they compromise portfolio values. With our Enterprise Solution, lenders mitigate charge-offs to return the value to their portfolios and reduce risk. In fact, every lender that has shifted away from legacy strategies and instead employed DRN’s data insights is seeing over a 300% return. How? If you can locate a car before charge-off, your ability to connect with your customer or to get it back improves greatly. And here’s what we are hearing from these lenders – they are being hailed for creating new best practices using our vehicle location data, practices that align with their charge to deliver increased portfolio returns,” said Chris Metaxas, Chief Executive Officer for DRN.
Opening up our pricing model to be value-based has also opened up new possibilities for lenders for finding new ways to use the data to improve collections and recovery. In a delinquent loans scenario where the lender has tried to contact borrowers at given addresses with no success, DRN Locations provided new addresses for up to 30% of the loans. These new addresses helped the lender to establish contact and secure payments in an otherwise dead-end scenarios.
In an ever-changing pool of borrowers, lenders have to stay on their toes to keep loans current. And DRN’s exclusive data helps them do just that. “So it just made sense that if you use our data earlier in the cycle you end up making contact with more of your customers and you may even prevent loans from going to repossession. Our customer experiences are shaping up to show that our data delivers real results – fast,” added Metaxas.