Car Finance

Capability overview for the Automotive Industry

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TRANSFORMATION FOR GROWTH

The auto finance industry has seen significant growth over the recent years. Over 90% of new and used vehicle sales are now being funded through an automotive finance option. Along with this growth, automotive finance defaults are also rising.

With such a large weighting and influence on the market, it has also attracted the attention of regulators. As a result, they have the industry under greater scrutiny for oversight and review.

Fair customer treatment is used as a final resort once all the correct steps have been followed are all current themes.

QUALCO helps automotive finance companies manage in a rapidly changing environment:

A complete offering with advanced collections features
Modular design to minimise bespoke customisation
Timely implementation and confidence regarding limiting cost overrun
Configurable system, one that supports agile change

Return management, less losses

A smarter digital future

The rise in self-serve

Compulsory return and voluntary termination are areas in automotive finance where nobody wins.

Customers may be under financial pressure and voluntarily hand back the vehicle, or when failing to come to an arrangement have the vehicle compulsorily repossessed through court orders. Vehicle returns create additional costs to the lender with court fees, recovery, storage, and through the asset sale process.

Asset management is a special process within Motor finance that requires careful management. Specific rules around the return, repossession, or sale of vehicles need to be followed. Time to asset recovery and sale is critical and complexities around vehicle recovery can result in varying valuations. Shortfalls on asset sales also require remaining arrears to be transferred to unsecured recoveries processes. At this point, the arrears can be of significant age and more difficult to recover.

How QUALCO can help manage the vehicle return process:

Inbuilt handling of PCP and balloon payments, with processes for voluntary termination and vehicle surrender

Reduce time to reach recovery and sale with a strong inventory and asset database

Manage complaints with a configurable module escalating where required with full SLA tracking

Take advantage of pre-defined processes and treatment paths to reduce legal costs and add controls

Automotive finance organisations are increasing their digital technology and data footprint. Technology and data are used to establish more efficient and effective strategies, segmenting portfolios, determining the next best steps to provide the most cost-effective outcome on several key dimensions:

Identification of self-cure and digital contact of customers
Deployment of best time and contact method communication channels
Determining appropriate use of internal and external strategies
Propensity to pay/cure, regardless of treatment
Likelihood of success at legal stages
Cost Vs Recovery of asset sale based on forecasted depreciation and market intelligence

Accelerate digital adoption with QUALCO:

Customisable digital channels allow customers to interact and self-serve through preferred channels

Integrated with the latest real-time APIs, all the latest forms of communication are easily accessible

Make better informed decisions based on accurate information with speed and ease

Determine the best outcome for customers tailored to their circumstance

Lenders are continuing to develop a self-serve capability to reduce the cost to serve and focus on fair treatment. Affordability (Income and Expenditure) remains a key process cost and is a key target for digital transformation, along with the continuous focus on developing cost-effective forbearance solutions offering greater flexibility for customers in financial difficulty.

Providing customers full transparency around the options available when in financial difficulty can prove rewarding for both customers and lenders alike.
Voluntary vehicle surrender, for example, can prudent from the customer perspective but can also yield benefits from the lenders' outlook in certain strategic circumstances; removing legal costs of repossession orders, accelerating vehicle return and remarketing, minimising depreciation.
The ability to manage processes digitally facilitates transparency on fees, often streamlines the process itself and removes a layer of cost to the benefit of the business.

QUALCO can help with your digital first strategy:

Determine the best outcomes from customers’ affordability and circumstances

Control and configure an automated I&E journey with set validation controls

Manage legal cases via external 3rd Parties with data exchange and interface functionality

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OUR VALUE PROPOSITION

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ECOSYSTEM

QUALCO’s technology ecosystem helps you leverage data to gain customer insights, understand account behaviours and flexibly drive effective collections strategies to stay in control. Use the latest tools and techniques to minimise losses, optimise cost whilst creating good customer journeys and outcomes.

ENABLES AUTOMOTIVE FINANCE COMPANIES TO: