Digital Recognition Network indicated that its license-plate recognition solution determined that more than 55 percent of the assets the company finds are more than 100 miles away from where previous documentation said the vehicle should have been.

Chief executive officer Chris Metaxas explained how finance companies can use that information not only as a tool to repossess the vehicle and ramp up the recovery process if a default takes place, but also how to use that data to enhance the origination process so the contracts going into the portfolio are better.

Metaxas plans to discuss the process in more detail during his presentation at the Re3 Conference, which takes place on Nov. 13 at the midpoint of Used Car Week at the Manchester Grand Hyatt in San Diego.

“Because most of the time people are near where their cars are, those insights on where somebody is actually represents a very interesting underwriting criteria that we see in the auto finance space,” Metaxas said.

“If that car is not where they say they are and all of a sudden that raises a flag,” he continued.

“For originators of loans, what’s really important is to determine the truth of a statement someone may make on an application,” Metaxas went on to say.

Metaxas emphasized that mitigating risk is what lenders keep seeking, a point he plans to highlight during his conference presentation titled, “Taking the Bottom Line to the Top: Harnessing the Power to Drive the Entire Customer Life Cycle.”

To reinforce his point, Metaxas shared a hypothetical example.

“If I deliver 5 percent total book value back as a return on the back end, that means I should be able to take that much more risk on the front end because I know I get it back,” Metaxas said. “I should be able to flip that return back to the front end in terms of being able to write more loans and in essence drive more revenue.

“If you think about what a bank does in translating risk mitigation into their ability to grow their book of business, the loans they write, the policies they write, it is substantial and is exponential. What you lose on the back end is only a fraction of what you write on the front end,” he continued.

There is still time to register for the Re3 Conference, which is sponsored by Digital Recognition Network and Primeritus Financial Services. The complete agenda and more can be found at www.usedcarweek.biz.

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