Ask to Answer Forum: Originations+

Volatility: How Auto Lenders Can Survive and Thrive

With rising interest, inflation, and defaults, auto lenders face a myriad of challenges in credit adjudication and loan management, made worse by a volatile auto market/valuations. Between COVID-19 and looming recession, over 90 million Americans have inaccurate credit scores, leaving lenders blind. But, even in this environment, you can still safely grow your business.

Learn more about how machine learning and alternative data can help lenders adapt to the gyrations in the market, and what auto lenders should be looking for (and avoiding) when adding these solutions. We’ll cover pitfalls in conventional credit, new data, how AI and ML can capture volatility, key compliance and platform considerations, and how to capitalize on auto-specific lending insights across the borrower lifecycle.

Key insights include:
1. Machine learning eats volatility for breakfast: you can actually harness volatility to be agile and adapt quickly to changes, allowing you to lead the market.
2. Alternative data offers a far more updated view of the consumer, critical in a world where things change rapidly.
3. Credit modeling and loan management is not one-size-fits-all: getting auto-specific insights and technology will give you a competitive edge and ensure you have the best information available.