Solutions

Auto Lending

Informed’s document AI enables auto lenders to board more loans faster, and reduce fraud and risk. The company processes 8% of all American auto loans so we have the data intelligence to speed and automate funding.  

By combining OCR, generative AI, a data consortium and document intelligence, Informed automates the auto lending funding process,  reducing Contracts in Transit and unwinds. And, the copilot “rides along” with loan officers helping speed up the  process and handle any required manual reviews.

Further, lenders and dealers use Informed’s vertically trained knowledge graph, AI and machine learning to decide and fund consumer credit applications in real-time with higher accuracy. Real time verification of consumer documents improves speed and accuracy, reducing error rates.

Reducing Friction in the Auto Lending Process

Reducing friction in auto  lending is important to consumers, lenders and dealers. Leading auto dealers and lenders offer faster, easier, and more secure customer experiences simply by leveraging their mobile phones. Further improving the experience is the automated validation of dealer documents. Everything from the RISC, VSC, GAP, odometer statement, etc can be checked for accuracy against lenders’ specific funding rules. Informed has more than 200 supported document types. And seven years of knowledge graph data means the copilot’s knowledge set is expansive, supporting real-time insights and automating loan onboarding.

Banks Are Shifting Focus to Income Verification Controls

With the prevalence of fraud and collections increasing, banks are shifting focus to income verification controls. Dealers can verify identity at onboarding and lenders can verify and authenticate income listed on paystubs and bank statements, mitigating fraud and decreasing credit risk. And, as added benefits, capture rates increase, contracts in transit times decrease and dealers get paid faster. To date, We’ve seen lenders achieve:

  1. 8% increase in loan Capture Rate
  2. $32M increase in Revenue
  3. 11% increase in Dealer Satisfaction
  4. 11% increase in Revenue per Contract

Vertical AI Increases Efficiency and Lowers Costs

AI helps auto lenders lower operating costs, becoming more competitive in high interest rate environments. Increased efficiency lets them pick up loans others cannot. And, it bulds confidence in their ability to mitigate charge-offs and control future delinquencies.

By automating time-consuming, repetitive tasks Informed enables lenders to be more productive and work more effectively to focus on essential, high value work such as improved customer experience and loss mitigation. Also, this efficiency extends to loan servicing and dealer relationship management (DRM). Finally, efficiency metrics achieved by lenders include:

  1. $6.3M Operational Savings
  2. Loan Processing sped up by 6.5 days
  3. 40% reduction in abandon rate
  4. 22% reduction in agent costs
  5. 6% increase in employee Satisfaction

Reducing Bias

Informed reduces lending bias using vertical Artificial Intelligence (AI) and machine learning technology. A real-time underwriting and funding process greatly improves the consumer experience for borrowers, including those who have been historically mistreated by the lending system, both by the service levels and the uncertainty they’ve faced with their credit applications. These learnings apply across the personal lending space and for full spectrum borrowers, especially in a rising interest rate environment.

Compliance Layer

By leveraging document intelligence, our knowledge graph,  data consortium, and state of the art vertical AI models, Informed’s automated compliance solutions cover the full product life cycle from loan funding to GAP compliance.  Informed’s compliance verifications range from portfolio monitoring to granular fee calculations, signature confirmation, and contextual assessments of information among multiple documents.  

The compliance solutions bridge lenders’ intelligence and state laws, ensuring seamless compliance with the ever-evolving landscape of financial regulations.

One lender saved $8.2M in projected compliance risk avoidance. This was based on percentage of manual controls, manual waiving, exception process and undocumented credit policies.

Knowledge Graph

Informed AI “Guardrails” organize, contextualize, and validate raw AI extractions. For example, based on the AI guardrails, document intelligence and historical data we can tell you when we see a fraudulent VIN or that a deal jacket should only have one RISC or that a GAP contract from a particular state looks a certain way This historical data from our data consortium has built a powerful knowledge graph that knows what to expect auto loan documents to look like.

Auto Lending

The Benefits

Informed makes auto lenders easier to do business with, resulting in increased market share, improved customer retention and:

Opens new markets due to agility and flexibility

Reduces information technology and operational costs

Speeds time needed to service loans and higher revenues

Developing the real-time risk review of customer data in Informed’s core platform utilizes available on-demand interactive customer contact strategies. This makes operations simpler, faster, and more efficient with better outcomes for dealers, lenders, and consumers.

Informed named to the Software Report's Top 25 AI Companies for 2024

X