In a move targeted at the subprime market, Spireon on Wednesday formed a strategic partnership with P360, a provider of loan-level data management and analytics. The companies highlighted the collaboration will provide a comprehensive portfolio solution to help auto finance companies to identify, calculate and monitor risk before it affects their business.

By coupling P360’s data-driven Mosaic loan intelligence platform with Spireon’s Goldstar GPS vehicle tracking, officials explained that finance companies can leverage business intelligence to significantly reduce risk and safely lend to previously overlooked borrowers.

By increasing penetration and yield to customers in lower credit tiers, the companies projected that finance companies can expand their overall portfolio production and performance, deploying more capital and increasing loan originations.

Meanwhile, Spireon and P360 claimed that institutions such as credit unions and regional banks can help their members build and improve their credit by providing better loan rates than other subprime finance companies.

“As the auto finance industry evolves, our customers are demanding more sophisticated tools to measure their risk and improve their ability to expand their portfolios,” said David Meyer, executive vice president of sales and services for Spireon’s automotive solutions group.

“Spireon is pleased to partner with P360 to be the first to offer tools that can improve decision making, increase return on capital, and streamline risk processes,” Meyer continued.

P360 president and chief executive officer Carl Meiswinkel added, “P360 and Spireon’s combined technologies will allow credit unions and other financial institutions drive better business outcomes by offering an unprecedented combination of live modeling tools for underserved consumer markets.”