PointPredictive recently announced the general availability of an enhanced version of DealerTrace, a comprehensive consortium-based analytic solution designed to provide auto finance companies with a dealer-level, holistic view of fraud and early payment default risk.
The firm explained this solution can allow most finance companies to detect dealer fraud up to six months earlier than currently possible with existing tools.
“Dealer fraud is an industry-level problem that affects all auto lenders,” said Frank McKenna, chief fraud strategist at PointPredictive.
“The enhanced DealerTrace service uses the power of the Auto Fraud Consortium to provide all participating lenders with unique cross-industry insights that allow them to identify their riskiest dealers and then take proactive and appropriate action to improve their overall loan portfolio quality,” McKenna continued in a news release.
Participating DealerTrace finance companies contribute their loan-level application information to the Auto Fraud Consortium on a monthly basis and provide information about fraudulent or early payment default loans as it becomes available. PointPredictive analyzes and combines information on a dealer-by-dealer basis across the consortium and provides each participating DealerTrace lender with a rank-ordered list of its highest risk dealers every month.
A finance company may also register for enhanced alerting to be notified when information about one of its dealers is provided by another DealerTrace finance company.
PointPredictive highlighted that DealerTrace can leverage the underlying pattern-recognition technology of the fraud and early payment default detection analytics of Auto Fraud Manager to create dealer-centric risk assessments based on finance company-reported application and outcome data.
Fuzzy-matching techniques are used to recognize the same dealer — perhaps operating under different names or with slightly different demographic characteristics — across multiple participating finance companies. This process can allow DealerTrace to form a cross-lender consortium-level view of each dealer’s risk characteristics that is beyond what any individual dealer could do on its own.
The strategy also can enable participating finance companies to benchmark their book of loans with a dealer against the consortium’s view of that dealer. PointPredictive insisted this benchmarking can be useful to detect instances where a dealer may be routing its riskier loans to certain finance companies.
“We are excited to release this updated and improved version of DealerTrace as the second solution offering for our Auto Fraud Consortium members,” said Tim Grace, chief executive officer of PointPredictive.
“By pooling data at an industry level, PointPredictive helps lenders aggregate their fraud knowledge, identify new fraud patterns more quickly, and collaborate to reduce fraud losses throughout the auto lending lifecycle,” Grace went on to say.
To learn more about DealerTrace or the Auto Fraud Consortium, contact PointPredictive at firstname.lastname@example.org.