Maximize Benefits with a Dealer Reward Program: A Win-Win for Lenders and Dealers

Maximize Benefits with a Dealer Reward Program A Win Win for Lenders and Dealers Informed

A dealer rewards program offered by a bank or lending company, incents car dealerships to finance their customers’ purchases through the lender offering those rewards. The rewards are usually based on meeting lending goals or performance benchmarks. And, they range from bonus points for each loan or lease origination to reaching a certain loan volume each quarter. 

Informed identifies dealers who provide clean deals, do not overstate income and deliver low fraud rates. Along with additional attributes to create a dealer scorecard and enable fast funding based on that scorecard. Some example attributes are:

  • dealer propensity to submit “clean deals” or deals without defects
  • top dealer performance based on straight through processing
  • propensity to over or understate income
  • dealer aggregation and metrics over Informed’s contributory database
  • income divergence 
  • risky bank statements

Using data attributes improves client risk-rating models, reduces false positives with machine learning-based detection models, and improves investigation productivity. This results in outcomes of smarter search algorithms and better data visualization and management. What it means for the lender is faster funding to dealers, without any increase in risk, resulting in happier dealers and lenders. 

Informed enables fast funding through event-based review cycles for low-risk dealers ensuring automated due diligence in compliance with risk and regulatory requirements. Also removing redundant checks and excess quality assurance and control (QA/QC), and reducing defensive suspicious-activity reports (SARs).

Low Risk, High Rewards

When a dealer is considered low-risk, Informed provides the opportunity to fund deals that are potentially missing or defective but can be addressed post-funding. Automation speeds up defect identification and allows for queue optimization and faster time to fund while remaining compliant. Informed also provides data to automate cure letters and back office support functions such as title, repossession, or SCRA.

Informed, provides dealers faster funding and streamlines and automates data collection and document handling for KYC and customer-due-diligence procedures. Lenders can provide dealer tools as a part of their dealer reward incentives such as Informed’s CollectIQ. Incenting dealers with tools eliminates unnecessary activities and provides more intelligent decision making, while fostering long-term partnerships. Offering loyalty benefits differentiates lenders from competitors, increases customer satisfaction, and ultimately drives sales and profits.

Dealer reward programs can be integrated into a dealer relationship management system and even tied to a vehicle brand or model. The ultimate goals of a dealer rewards program are to:

  • build strong relationships between lenders and dealers
  •  increase market share
  • provide added benefits for dealerships using the lender’s financing services

A dealer reward program is a win-win for both dealers and lenders. The lender builds strong relationships with dealerships and increases market share.  And, the dealerships benefit from the program’s rewards and incentives.

To learn more about our CollectIQ dealer tools, or dealer rewards or management programs, reach out for a demo

A version of this story was previously published on Auto Finance News.

author avatar
Jessica Gonzalez Director of Lending Strategies
With more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa, Jessica Gonzalez is now the Director of Lending Strategies at Informed.IQ.

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