Open Lending recently shared how successful 2019 was for the firm that strives to help finance companies take prudent risk in the subprime space.
The provider of a unique auto lending enablement platform with default insurance signed 77 new finance companies to its Lenders Protection program in 2019.
According to a news release, notable finance companies now using Open Lending include $8.3 billion Alaska USA, $9.1 billion VyStar Credit Union, $4.8 billion Idaho Central Credit Union, as well as two captives.
“We are extremely excited about the unprecedented number of lenders who signed agreements to partner with Open Lending in 2019,” Open Lending chief executive officer John Flynn said in a statement. “The auto-lending market continues to see extreme competition and we believe our platform enables auto lenders to provide expanded offerings that allow them to be more competitive without unduly increasing their risk.”
Open Lending uses various alternative data sources and proprietary underwriting to determine the appropriate risks for borrowers who don’t have a prime credit profile. The fully automated system then can calculate an interest rate inclusive of the cost of a default insurance policy that helps mitigate the loss in the event the consumer defaults.
“Lenders Protection helps auto lenders say ‘yes’ to more loans,” Flynn said. “It helps lenders earn more from loans that they might otherwise deny and build stronger relationships while providing a credit enhancement offsetting additional risk.”