Auto Finance Summit 2019: Taking Aim at Fraud and Keeping Up with Technology
ACI Worldwide bill pay experts were recently at the 19th annual Auto Finance Summit in Las Vegas for three days of networking and education with industry leaders in auto lending and leasing. When we weren’t at our booth demoing the ACI Speedpay solution, we were catching up with our peers and attending informative panels and sessions. Here are our top-three takeaways from the show:
#1: Fraudsters are on the prowl
Auto loan fraud is on the rise as scammers grow smarter and savvier. Auto Finance News reported in its October issue that they’ve discovered 20 cases of auto loan fraud in the U.S., affecting lenders, credit unions and independent financiers, and resulting in $173 million in fraudulent loans and stolen vehicles. In order to curb fraud, financial institutions need to work closely and communicate with auto dealers. With the majority of fraud cases involving false identification, it’s on dealers to verify social security numbers and employment information and look out for suspicious behavior (e.g., looking down at an ID to share their ZIP code or being overly prepared to prove their identity). At the same time, lenders have an obligation to raise red flags with dealers and communicate with fellow lenders if something doesn’t feel right. Only then does the industry have a real chance of successfully fighting fraud.
#2: Technology continues to evolve
While it’s hardly a new trend, technology in the auto finance space continues to evolve to meet lenders’ various needs. Artificial intelligence (AI) and machine learning can help automate the underwriting process and provide a clearer line of sight into an applicant’s financial standing. Machine learning also powers fraud analysis technology, which can identify red flags across millions of applications, as well as credit modeling, which accesses applications with little manual input from underwriters. By keeping up with the latest advancements in the industry, lenders can determine which technologies to implement to streamline their business practices.
#3: 2020 will bring growth, not recession
Despite murmurs of an impending recession, industry experts are confident that the next year will bring growth as opposed to an economic downturn. According to a senior economist from the Federal Reserve Bank of Chicago, recessions are sparked by major negative events – 9/11, the housing market bubble burst in 2008 and the Iraq War all had severe economic consequences – but no such event has occurred in 2019. Instead, the forecast shows room for growth in industries that provide goods and services, such as the auto finance industry.
In addition to these key learnings, our team was able to connect with customers and engage in conversations about preparing their bill presentment and payment strategy for 2020. As consumer preferences and needs continue to evolve, and digital payment channels continue to advance, auto lenders have to keep up to ensure customer satisfaction – or risk getting stuck in the slow lane.
Interested in connecting with us at a future event? To learn more about the ACI Speedpay solutions, contact a member of our sales team at [email protected].
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