Machine learning technology improves borrowing experience for emerging credit consumers while reducing lending operations costs.
Point Predictive, the AI company that increases trust in lending, announced today that American Credit Acceptance, a leading US auto finance company, has adopted its Auto Fraud Manager solution to automate and improve the lender’s funding stipulation decision strategy and keep fraud exposure reliably low. As new origination volume remains robust, many lenders have an opportunity to safely and profitably grow their auto loan portfolios by intelligently automating stipulations at the point of application. With Auto Fraud Manager, American Credit Acceptance (ACA) will leverage Point Predictive’s unique, industry-wide Consortium data approach to safely expand its dealer network and ensure trust across its portfolio.
Auto Fraud Manager was developed using Point Predictive’s patented Artificial + Natural Intelligence™ machine learning approach, which provides predictive fraud scores, reason codes, and fraud alerts that can only be generated with perspective of over one hundred million historical loan applications and billions of risk attributes. This innovative application of data science informs the most intelligent stipulation determinations for each and every future loan application based on its unique risk profile at that moment in time. Fraud can be predicted based on links to prior early payment default, suspicious patterns, and deeply analytical inferences based on a wide array of fraud risks.
“American Credit Acceptance is investing in advanced technologies to deliver a low-friction borrowing experience to as many car buyers as possible,” said Pardhav Lingam, Vice President of Business Analytics at ACA. “Since a large portion of our lending is indirect, it is critical that ACA adopts a stipulation strategy that enhances the experience for trustworthy borrowers and helps us maintain a strategically-aligned dealer network to achieve positive outcomes for everyone in the auto finance ecosystem,” he continued. “We use Point Predictive’s Synthetic ID Alert™ solution already, so our adoption of Auto Fraud Manager affirms our commitment to the proven data Consortium approach,” he concluded.
Tim Grace, Co-Founder and CEO of Point Predictive, celebrated ACA’s decision to harness data science to achieve its strategic growth and risk management objectives. “Stipulation strategy has emerged as a key innovation opportunity that directly drives bottom-line results for auto finance companies,” he said. “We’re proud to have partners like ACA whose participation in the Consortium have affirmed Point Predictive’s leadership in fraud technology and machine learning,” he concluded.
With Consortium membership approaching 50 leading US lenders and dozens more lenders planning to adopt Point Predictive’s AI solutions and strategies for risk management, Frank McKenna, Co-Founder and Chief Fraud Strategist for Point Predictive, sees only one choice for auto lenders. “Intelligent automation for fraud management is imperative for growth,” he said. “Lenders want to grow origination volumes through all channels, including through dealer networks and digital channels,” he said. “We’re thrilled that ACA sees Point Predictive as the obvious technology partner in that mission,” he concluded.
As part of its evaluation process, ACA engaged Point Predictive to perform a retrospective analysis which sought to understand the efficiency and risk reduction impact of using Auto Fraud Manager to drive improved stipulation strategies. In particular, the study identified 33% of total loan application volume that could be streamlined, offering an opportunity to clear unnecessary stips and accelerate funding. With Auto Fraud Manager informing stipulations, early payment default risk associated with these streamlined loans could be managed down to below 1%.
Auto Fraud Manager is available today to all financial services providers seeking lower exposure to loss and accelerated funding for trustworthy borrowers. Please contact info@pointpredictive.com for more information.
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