J.D. Power and JM&A Group are leveraging their collective finance-industry knowledge, forming a strategic alliance to develop jointly branded F&I products and services for auto dealers and buyers nationwide.
Focused initially on a suite of warranties and service contracts designed to support the growth of vehicle sales, the two companies said in a news release on Thursday that they also will offer F&I training and certification programs and collaborate on data and analytics projects leveraging their collective industry insights.
“It was important to J.D. Power to work with a group of experts that not only know the F&I space, but also have a reputation for service and integrity that would be aligned with J.D. Power’s reputation as a voice for the customer,” JM&A Group president Dan Chait said in the news release.
“We are honored to be the only F&I company to be aligned with J.D. Power to produce unique products and services with a consumer-centric approach,” Chait continued.
Together, the brands indicated they will create and release protection products, including a certified pre-owned program, limited warranties, and maintenance and service contracts, that inspire confidence for buyers and dealers alike.
Designed to plug seamlessly into existing dealer F&I workflows for both online and in-person transactions, the companies said these warranty and protection products will be offered through dealers nationwide.
“As the industry continues to evolve and dealers focus on a customer-first approach, quickly creating trust becomes paramount to success,” Chait said. “This alliance perfectly positions our dealers to enhance their performance in-store as well as online by building trust in the F&I products and process they present to customers."
To help dealers who want to take their F&I operations to the “next level,” the two companies also will offer select F&I training and certification opportunities through the JM&A Performance Development Center.
Additionally, J.D. Power and JM&A Group added that they will be pooling their collective vehicle and customer intelligence data, assembled over a combined 100 years of auto industry experience, to design new products and services for the industry.
“At J.D. Power, our goal is to help shoppers make better purchase decisions,” said Chris Sutton, vice president of automotive retail at J.D. Power. “The F&I process can be daunting for many consumers. We believe that our collaborative product design on co-branded products with JM&A Group will add value by showing consumers that the dealer’s F&I programs meet J.D. Power’s high standards.”
To learn more about the alliance, visit https://info.jmagroup.com/jd-power-alliance.
Repossession agents and other recovery industry firms certainly do not have a shortage of options for training to remain up to date on compliance and other intricacies of what might be the most complicated segment of auto financing.
This week, the American Recovery Association (ARA) and Bassford Remele announced what they called a “groundbreaking” partnership that will bring “unparalleled” educational and compliance perspectives to both the finance and repossession communities.
ARA plans to utilize Bassford Remele’s trusted compliance and litigation experience to assist ARA members in developing a “culture of compliance’’ that will stand out across the recovery industry.
The partnership kicked off with an industry-wide webinar on Wednesday.
Bassford Remele is a full-service litigation firm based in Minneapolis. The firm has built strong relationships with business leaders in a number of industries, including credit and collections, background screening, secured lending and leasing, construction, agribusiness, health care and technology.
ARA highlighted that Bassford Remele’s lawyers have a depth of experience in various practice areas, including defense of consumer law claims (FDCPA, FCRA, TCPA, wrongful repossession), collection and replevin proceedings (UCC Articles 2A and 9), creditor representation in bankruptcy, data privacy compliance and litigation, as well as many others.
Bassford Remele regularly litigates cases through trial in the district courts, handles appeals at the state and federal level and represents clients in regulatory investigations and proceedings.
The firm’s lawyers are licensed to practice in numerous state and federal jurisdictions across the country.
“We are honored to have a company with the reputation of Bassford Remele partner with our association with the intent of taking our CCRS program to the next level and supporting our mission to equip recovery professionals with the knowledge needed to succeed in today’s ever-changing landscape,” ARA president Dave Kennedy said in a news release.
“This is another great step in our efforts to unite the industry and provide our members with tangible resources that can benefit their businesses long-term,” Kennedy continued.
As part of this new partnership, ARA said it will be able to provide additional compliance materials to help navigate legislative perspectives.
ARA mentioned Bassford Remele’s participation in ARA’s new online community at Repo.Tradewing.com.
“We are very excited to work with the ARA and its membership on the compliance and litigation fronts,” Bassford Remele shareholder Patrick Newman said. “More than anything we look forward to being a resource for the recovery and remarketing industry.”
For more information about ARA, its partnerships and its member benefits, visit repo.org. For more information about Bassford Remele, visit bassford.com.
Finance company managers might do a little “happy dance” when they can establish a direct payment pipeline between the company and their contract holders.
Payix finalized a payment processing agreement this week that might be worth a rhythmic reaction, too.
Payix announced this new bank sponsorship agreement with MetaBank encompasses both ACH and CARD transactions.
The company explained the agreement expands Payix’s merchant services capabilities, allowing Payix to provide its clients — primarily lenders and loan servicers — additional processing products and flexibility when considering payment solutions in conjunction with the Payix white-labeled, borrower-facing software platform.
The company added that this agreement with MetaBank also will also allow Payix to interface directly with the major card brands.
“We’re very excited to now be aligned with undoubtable one of the leading providers of payments services in the industry,” Payix chief executive officer and co-founder Chris Chestnut said in a news release.
“With MetaBank’s highly scalable solutions and deep processing competencies, I’m certain our clients will quickly benefit from this new relationship,” Chestnut said.
Completing agreements like this one sometimes prompts entrepreneurs such as Chestnut to have a “happy dance,” as well. Chestnut was part of an online panel discussion organized by Payix in conjunction with Visa that featured other entrepreneurs recollecting how they navigated the challenges and celebrated the successes of building a company.
That online event hosted by Cherokee Media Group can be seen here.
Digital Matrix Systems (DMS) and Enova Decisions announced a partnership tailored to support the risk-management needs of non-prime finance companies.
To help finance companies make decisions quickly with high accuracy and minimal exposure to fraud, DMS and Enova Decisions pointed out there are a variety of factors at play behind the scenes. They explained that leveraging credit bureau data in conjunction with alternative data sources not only can improve accuracy and mitigates fraud risks, but also can provide finance companies with the ability to reach underserved consumers.
Using carefully selected alternative data can provide a competitive advantage by providing a clearer picture of creditworthiness when paired with machine learning models, according to the companies, which added it’s even more critical for all underwriting decisions when meeting the financial needs of subprime and near-prime consumers.
Enter the collaboration of DMS and Enova Decisions, which is part of Enova International, a leading machine learning (ML) and artificial intelligence (AI) powered financial services company.
This data and analytics partnership supports the two companies’ common goal of helping lenders get the most value from data and minimize risk in support of effective lending decisions.
Enova Decisions’ flagship decision management platform Enova Decisions Cloud can allow finance companies to operationalize AI and make decisions from the cloud via a simple API call.
Enova Decisions will leverage Data Access Point, a connectivity hub from DMS that can link clients to all three credit bureaus and more than 20 alternative data source providers with a single inquiry and delivers the data within a standard XML format.
The company also said credit reports are delivered via the easy-to-read DMS credit report format, which can reduce errors and improve readability of critical credit information.
As business needs evolve, Enova Decisions stressed that it will be able to quickly and cost-effectively add additional data sources for its clients.
In addition to data access, Enova Decisions said it will leverage the tri-bureau DMS Summary Attributes in its machine learning models.
This set of standardized and normalized attributes can consolidate credit information for easier analysis by application and decisioning platforms. This process can provide consistency over multiple bureaus and bureau versions without compromising processing speed.
“We’re excited to work with the Digital Matrix Systems team,” said Jim Granat, senior vice president of Enova Small Business and Enova Decisions.
“We are continually looking for ways we can improve the solutions we deliver to our clients, and this partnership enables us to enhance our core ML and advanced analytics capabilities and make even more data available to our clients in real-time,” Granat continued in a news release.
Digital Matrix Systems senior vice president Carson York added this perspective on the partnership.
“We are thrilled to be working with Enova Decisions in the delivery of analytic services that improve outcomes for lenders,” York said. “DMS seeks partners that are committed to exceeding client expectations, and Enova consistently does this for their client base through the development of models that support lenders and mitigate risk through the entire customer journey.”
Like Humphrey Bogart said in the film, “Casablanca,” it appears CoreLane Technologies and Nationwide Acceptance are on their way to a beautiful friendship.
The provider of innovative transactional connectivity solutions for dealers and finance companies announced a partnership this week with Nationwide Acceptance, which specializes in funding installment contracts with consumers having “less than perfect credit.”
According to a news release, the companies will work together, enabling better financing options for dealers through CreditLane and providing another source for consumers wanting to establish better credit.
“We are excited to expand our reach to dealers by joining the CreditLane platform,” Nationwide Acceptance president and chief executive officer Martin Less said. “The integration process went smoothly and we look forward to a long-term relationship with CoreLane.”
Both companies pointed out that dealers today are facing numerous challenges from the COVID-19 pandemic. Nationwide had been looking for partnerships like this one with CoreLane to help manage costs, increase volume and work with dealerships more effectively throughout the country.
CreditLane can provide finance companies with a low-cost SaaS solution for receiving applications and originating installment contracts.
“We are excited by this partnership with Nationwide Acceptance offering dealers more options to secure the best funding available for consumers,” CoreLane vice president of operations Evan Lindbeck said.
“Collaborating with Nationwide to integrate our platforms together is an incredible way to extend auto financing options to consumers and is enhanced by their considerable experience and dedication to offering great customer service,” Lindbeck went on to say.
For more information on receiving originations through CreditLane, visit www.corelanetech.com/forlenders.
Black Book and Constant now are working together in an effort to help auto finance companies successfully navigate the potential rise in delinquencies and repossessions.
Black Book enhanced data and analytics, including vehicle valuations, now have been integrated within the Constant+ loss mitigation platform.
Access to Black Book data is now available for all Constant clients.
The Constant+ self-service platform is geared to unlock expanded loss mitigation strategies to offer finance companies agile solutions not otherwise available.
With the integration of Black Book data to Constant+, finance companies can minimize credit losses and preserve consumer goodwill by leveraging precise VIN-specific valuations adjusted for vehicle history to strengthen decision making.
The goal is to empower finance companies to choose from an expanded list of loss mitigation solutions and select the least costly path forward to maximize recovery and protect narrow margins.
“This year will be as uncertain as 2020. Increased consumer protection regulations may interrupt traditional repossession strategies, used car prices may continue their decline, and borrowers’ ability and willingness to repay will likely remain volatile,” Constant chief executive officer Catherine Powers said in a news release distributed last week.
“Lenders will want to be agile and armed with strategies that go beyond extensions, spinning the dialer, and repossession,” Powers continued. “To this end, automation is critical. The data on our platform must be precise and available in real-time. And for that reason, we’re excited to add the integration of Black Book’s industry leading data and analytics.
With Black Book data integrated with Constant+, finance companies can make the best decision about whether it makes sense to recast or restructure debt or offer a short payoff or voluntary surrender if repossessions are spiking or moratoria are expanding.
“We are excited to partner with Constant+ on this innovative solution for auto lenders. Black Book provides unparalleled data and analytics tools to support the auto lending process from loan origination, risk mitigation, loss forecasting to asset remarketing,” Black Book executive vice president of revenue Jared Kalfus said in the news release.
“With Black Book, the Constant+ self-service platform helps lenders evaluate hardships and potential recovery solutions in real-time and with high confidence in the true value and related exposure of the asset,” Kalfus went on to say.
Westlake Financial certainly appears to see immense value in the potential of subscriptions of used vehicles, saying that they might be at the development stage where leasing sat four decades ago.
In fact, the company pegged that possible value at $400 million.
Late Thursday, NextCar Holding Company (NXCR), a fintech and insurtech vehicle subscription platform, and Westlake announced that they have signed a letter of intent to secure a $400 million debt facility and to enter into a strategic partnership.
“Subscriptions represent an entirely new way to get flexible access to mobility,” NXCR founder and chief executive Scott Painter said in a news release. “Having strategic partners like Westlake is one of the building blocks for scaling subscriptions in a profitable way.”
NXCR explained the $400 million debt facility from Westlake will provide the platform with highly flexible and efficient capital to finance subscriptions.
The firm added the strategic partnership will also provide NXCR with loan and collections services through Westlake, as well as access to Westlake’s dealer network to scale indirect subscription offerings.
For Westlake, the company said the partnership with NXCR will also introduce access to a new product line that enables a 100% digital transaction.
“Figuring out how to innovate around our financial products with a known entrepreneur like Scott is an exciting development,” said Bret Hankey, president of Hankey Group and vice chairman of Westlake Financial.
“We see used-vehicle subscriptions similar to how leasing was seen when it was introduced 40 years ago, except the size of the opportunity is much bigger on the used-car side, and we believe technology and a digitally-driven consumer base will enable much faster adoption,” Hankey continued.
This relationship with NXCR continues a string of new paths Westlake forged this year, including what was dubbed as a “pioneering platform” with Agora Data in the buy-here, pay-here industry as well as entering into the commercial-vehicle financing world.
“Partnering with NXCR is an exceptional product-market fit that puts Westlake on the frontline of financial services innovation,” said Ian Anderson, group president at Westlake Financial.
“A flexible mobility option outside the traditional loan or lease that’s affordable and not bound by terms is a highly attractive value proposition for consumers and forward-thinking dealers,” Anderson went on to say.
SouthWest Dealer Services finalized a strategic partnership with Darwin Automotive last week.
The provider of F&I and anti-theft programs as well as related training services for dealerships announced its new connection with Darwin to expand SWDS’ digital retail sales platform for its dealer clients.
Darwin is an automotive software provider that can enable a seamless and transparent, shopping experience while increasing profitability. In this way, Darwin sees itself especially well-positioned to support clients and partners in this heavily digital selling environment.
Meanwhile, SWDS became a preferred partner for Darwin’s F&I presentation software and digital retailing and consumer self-service tool.
SWDS mentioned that it has also negotiated preferred pricing for its dealer clients, providing access to Darwin's extensive platform at a significantly reduced cost.
“Providing our dealer clients with Darwin’s advanced digital retailing software facilitates a solution to the market’s increased need for buyers to purchase their F&I products virtually,” SWDS vice president of sales Bill Wilson said in a news release.
“We know providing a quick and efficient transaction, is extremely valuable in driving income. As an industry leader of anti-theft and surety programs, SWDS embraces this platform and enthusiastically will incorporate its functionality into our dealership training and business development services,” Wilson continued.
Darwin Automotive chief executive officer Phillip Battista added, “We are excited to partner with SWDS as it is clear they understand the importance of an integrated shopping experience to help boost business by simplifying the online sales process.
“Enabling their dealer clients and customers to interact in the way they need and want to transact right now, which should increase both CSI and profits,” Battista went on to say.
The American Recovery Association is looking to smooth one of the most challenging parts of the recovery process through what the organization is calling a “ground-breaking” partnership with ACV Auctions.
With access to ACV’s inspection services and active marketplace, ARA said on Wednesday that its members now can leverage ACV to seamlessly inspect, list and sell vehicles same-day directly from ARA member storage facilities.
To recap, ACV is an online wholesale automotive marketplace driven by technology to provide transparency and national scale through third-party, accurate vehicle condition reports and 20-minute auctions.
With this newest partnership, ARA members will now have access to a new remarketing strategy that can allow for additional revenue streams and access to an active national buyer pool through ACV’s online auction platform.
“We are glad to promote a company that recognizes the value of our facilities and the true meaning of engaged customer service,” ARA president Dave Kennedy said in a news release. “I am positive that this relationship will be a valuable one for the ARA membership, and for the lenders that utilize the ACV Online Auction platform.”
As part of this new partnership, ARA will be able to facilitate a new remarketing strategy for finance companies, utilizing ARA member’s professional locations as marshaling centers for repossessed collateral.
With access to a large database of vehicle history and condition information, ACV’s inspection force, once dispatched to an ARA member storage facility, can produce a comprehensive True360 condition report to assess the “true” value of each vehicle before its listed for sale on ACV’s live, 20-minute auction platform.
ARA said this process can give members an immediate return for every vehicle that is sold through this platform from their storage facilities.
“We look forward to offering ARA members an efficient remarketing opportunity that will enhance their core business offerings. ACV’s online auction experience puts the customer in the driver’s seat, saving them time and money,” ACV chief sales officer Mike Waterman said.
“Given ARA’s wide member base and professionalism in the auto-recovery industry, this partnership was a natural fit,” Waterman continued.
For more information about ARA, its partnerships and its member benefits, visit repo.org. For more information on ACV Auctions, visit acvauctions.com.
Officials from 3530 Technologies recently broadened their partnership with Carleton, integrating CarletonCalcs and CarletonDocs API components into their software solutions and services for consumer and business lending.
According to a news release, this new partnership expands CreditCore — 3530 Technologies loan origination solution(LOS) — to support direct lenders with comprehensive electronic documents and accurate and compliant disclosure computations.
The companies highlighted that utilizing both components in tandem can ensure not only that the correct electronic document sets are dynamically compiled in application and closing packages, but that each computed value is produced featuring Carleton’s 50 years of expertise in providing precisely configured lending calculations.
“Carleton’s computational compliance expertise adds credibility and confidence in our client’s lending-configurations providing critical value and quality to the CreditCore user experience,” said Troy Anderson, chief executive officer of 3530 Technologies.
“Meeting our client’s needs is always a top priority and adding both CarletonCalcs and CarletonDocs API components ensures the CreditCore LOS has complete flexibility to accommodate all types of consumer and business lending products and their corresponding disclosure compliance requirements,” Anderson continued.”
The provider went on to mention that CreditCore’s enhanced flexibility means 3530 Technologies can serve a more diverse spectrum of lending operations. These Carleton components can help clients optimize their operational workflows.
The CarletonCalcs API is designed to compute contract disclosure values, automatically reducing them if they would otherwise exceed state and federal Truth in Lending Act (TILA) compliance requirements.
Meanwhile, CarletonDocs can empower 3530’s clients to deploy “off the shelf” document sets, third-party document provider offerings or a combination with their own custom forms.
Carleton said its solutions bring a “distinct” added value to the CreditCore LOS, ensuring each of 3530’s clients are able to configure CreditCore to the exact requirements of their lending operations.
“Through Carleton’s partnership with 3530 Technologies, we’re able to deliver cutting-edge compliance capabilities and allow lenders the ability to streamline and optimize their compliance processes,” Carleton president and chief operating officer Matt Ruszkowski. “3530 Technologies’ clients can have confidence that Carleton will deliver compliant disclosures in this unforgiving regulatory environment.
“Additionally, Carleton’s team will help ensure a successful and compliant CreditCore integration, both within the initial implementation project and whenever computations and disclosures need to be updated,” Ruszkowski continued.
“Carleton was founded over 50 years ago with our sole focus on delivering accurate and compliant consumer lending calculations. Over these years, we’ve been successful helping our partners maintain and adapt to an ever-changing compliance landscape, and our relationship with 3530 Technologies is a terrific example of that,” he went on to say.
To learn more about Carleton Lending Solutions, go to www.carletoninc.com.
