Point Predictive finalized four different relationships this month with a variety of auto-finance industry companies that plan to use the firm’s products to curb fraud.

The company that offers machine learning solutions now is working with MidAtlantic Finance, TCI, Nicholas Financial and Tricolor Auto.

The newest development arrived on Monday when Point Predictive announced that MidAtlantic Finance has selected the company’s scoring solutions to help improve underwriting decisions prior to funding contracts. MidAtlantic Finance plans to use two scoring solutions from Point Predictive: Auto Fraud Manager to score applications for risk of early payment default, fraud and material misrepresentation, as well as IncomePass to assess borrowers’ stated incomes for validity for improved application streamlining.

“In our retrospective testing with Point Predictive, we saw significant lift of the solutions to help us achieve multiple business gains,” MidAtlantic vice president Michael Pereira Jr. said in a news release. “In the highest risk scores, we were able to identify loans that have a significantly higher risk of early payment default due to fraud or material misrepresentation.  We can use those high scores to scrutinize those deals more carefully.

In the low risk scores, we found loans had significantly lower rates of risk and default,” Pereira continued. “We can use those low scores to clear loan stipulations, route loans for faster funding and in general make the whole funding process easier for our dealers and customers.  Our plan is to integrate those scores into our existing processes and internal scores to achieve those benefits across all loans going forward.”

To Point Predictive, the addition of MidAtlantic to the consortium is growing proof that shared intelligence and artificial intelligence is the future of auto-finance fraud and risk mitigation.

“We’re proud to partner with MidAtlantic,” Point Predictive Tim Grace chief executive officer said. “Our consortium data and AI scoring will enable them to identify significantly more early payment default before funding and. just as important, they will help them understand which deals have low risk of misrepresentation and default so they can proceed down a faster path to funding. 

“Better targeting is the key to profitability and growth and that’s exactly where we aim to help MidAtlantic,” Grace added.

MidAtlantic said it will use Point Predictive’s Auto Fraud Manager to helps address the $7 billion-dollar annual problem of misrepresentation and fraud in the auto finance industry.

Point Predictive reiterated that Auto Fraud Manager uses machine learning to mine historical data from applications across the industry to precisely pinpoint where fraud is happening and how it is perpetrated.

More than 70 million applications have been evaluated and scored by the system, which is continuously learning new patterns as they emerge.

Additionally, MidAtlantic will use Point Predictive’s IncomePass — a solution that can provides an instant assessment of the accuracy of an applicants stated income.  

Point Predictive said that finance companies have found that IncomePass can help them automatically identify and clear stated incomes on up to 80% of their applications without costly database checks and onerous requests for documentation such as pay stubs, which are subject to high rates of forgery

Nicholas Financial picks Point Predictive

Another finance company to select Point Predictive as a service provider is Nicholas Financial, which specializes in subprime contracts.

Like MidAtlantic, Point Predictive said Nicholas Financial will use Auto Fraud Manager as well as IncomePass

“Point Predictive is excited to partner with Nicholas Financial to help them achieve better relationships with their borrowers and their dealer network,” Grace said.  “Our solutions help lenders reduce their risk of early defaulted loans by up to 50% and, in the process, help them streamline an additional 30% of their loans for reduced stipulations and friction in the lending process. 

“By better targeting risk, the end beneficiaries are their dealers and borrowers who can see a reduction in the time it takes to fund loans,” Grace continued.

Nicholas Financial chief executive officer Doug Marohn explained why he believes solutions from Point Predictive will further enable to deliver on the company’s strategy to provide their customers and dealers a quick, easy and hassle-free funding process.

“At Nicholas Financial, we understand that ensuring risk control while providing great customer service is a delicate balancing act. We’ve been able to successfully mitigate and price for risk by identifying fraud throughout the underwriting and funding process,” Marohn said.

“In the current market, managing fraud and early payment default risk is critically important; we need to know who we can trust, and who we cannot.  We believe Point Predictive will help us become even more effective in doing just that,” he went on to say.

Tricolor Auto goes with Point Predictive

Point Predictive’s active month began with the company announcing Tricolor Auto will use its Auto Fraud Manager solution to improve risk identification during the underwriting process.

“We are delighted to have Tricolor join our growing list of lenders that are leveraging the power our Ai,” Grace said. “Our unique approach of combining Artificial + Natural Intelligence (Ai+Ni) and harnessing the power of our proprietary consortium data has proven to work time and time again for lenders across the risk spectrum. 

Our testing with Tricolor showed that we were not only able to help them better streamline low-risk applications for quicker funding, but we could also help them identify high-risk applications that might require more scrutiny for potential fraud or misrepresentation,” Grace continued.

“In the end, this will result in lower early payment defaults and more pull through, since they can potentially avoid costly and time-consuming stipulations when the risk is low,” he went on to say.

Tricolor is enjoying success as a subprime auto-finance provider that specializes in working with Hispanic consumers, receiving designation as a Community Development Financial Institution (CDFI) by the U.S. Treasury Department last year.

“Tricolor’s focus has always been to use advanced data analytics and Ai technologies to deliver high quality used vehicles at affordable loan rates for low income families,” Tricolor chief risk officer James Li said. “Point Predictive’s solution fits right into that strategy because of the unique insights their consortium and Ai bring to our decisions. 

“With their scores, we can instantly assess the risk of both misrepresentation and the related probability of default,” Li continued. “This helps us make more informed fraud management decisions about each loan application — which ones can be queued for streamlined processing and which one we might need to take a closer look at. 

“Ultimately, we will fund more loans, faster and more safely, to worthy borrowers,” Li added.

Origination platform opts for Point Predictive

Finance companies aren’t the only organization aligning with Point Predictive.

Point Predictive also a new standard integration with TCI, a leading loan origination platform provider, to help lenders and finance companies better address the rising risk that they face with fraud and misrepresentation.

As part of this standard integration, Point Predictive’s full suite of artificial intelligence solutions can be delivered to TCI’s customer base of more than 500 finance and lending companies. The integration with TCI now means that all TCI customers will have quick access to solutions to help them better address fast-growing types of fraud such as synthetic identity fraud, income fraud and auto lending fraud.

“TCI is committed to delivering state-of-the-art capabilities to our lenders,” TCI president Bill Nass said. “Right now, fraud and risk are at the forefront of every lender’s mind; with the solutions provided by Point Predictive, we can help lenders rest a little easier.

“Point Predictive solutions will help our customers decide instantly, before they make decisions to fund loans, which applications contain accurate information and which ones do not,” Nass continued. “Partnering with Point Predictive gives our lenders instant access to Point Predictive’s multi-billion attribute fraud consortium and cutting edge Ai+Ni technology.”

Point Predictive explained that its suite of AI machine learning scores and fraud alerting technology will give financial services companies using TCI’s loan origination system the ability to streamline applications for loans and new accounts by precisely identifying which applications contain misrepresentations. In most cases, Point Predictive said it is able to help lenders and finance companies identify a majority of their fraud risk in the riskiest 10% of their total application pool so they can perform greater due diligence on those applications prior to funding. 

At the same time, lenders can also use the technology to auto clear and remove burdensome friction from up to 30% of their applications that contain virtually no risk of fraud or misrepresentation.

“We’re excited that TCI completed the standard integration of the Point Predictive Ai auto loan application, dealer and income risk management products. We know finance companies and lenders want easier access to solutions in real-time that can help them immediately reduce fraud risk with low false positives,” Grace said. 

“With a respected solution provider like TCI, we can now easily provide access to our powerful scores and alerts to many finance companies that grapple with fraud issues each and every day but may not have the technology resources to implement quickly,” he continued.

TCI’s clients will have access to a full suite of risk scoring technologies including Auto Fraud Manager, Auto Fraud Alert, IncomePass and SyntheticID Alert.

For more information about leveraging Auto Fraud Manager, Auto Fraud Alert, IncomePass or SyntheticID Alert, contact Point Predictive at info@pointpredictive.com.