AI Technology – Transforming Auto Finance

ByAdvantage GPS

Transforming the Auto Industry Through Modern Analytics & Technology

Machine learning and Artificial Intelligence (AI) has transformed the automotive asset finance industry, and now it has become a standard in the deep subprime and BHPH marketplace. Finance professionals can allow machine learning to assist with underwriting, collections, and service maintenance to maximize portfolio performance.

The terms “machine learning” and “AI” have become synonymous in recent years, but what they mean is that computing power gathers data from past finance contracts, analyzes it, and then make decisions without human assistance. We are all familiar with instant credit approvals, and that’s asset finance AI at work.

The auto industry has always been a place where manufacturers and modern technology fuse to make innovative solutions. AI is now being used in the deep subprime marketplace, and while it’s not as robust as with large automotive finance companies, it’s definitely trending in that direction.

The use of GPS technology to track individual vehicles and monitor fleet performance has given rise to vast amounts of data. Data is the key driver to AI to make predictions based on past performance given parameters set by the finance company. The data and its analysis now provides finance professionals with powerful tools.

I’d like to spend the next few weeks breaking down the various types of automotive analytics that Advantage’s advance technololgy offers BHPH dealers and vehicle finance companies to help lower expenses, better protect assets, assist in making real-time collections and future funding decisions, and ultimately realize greater profits.

Today’s topic: Artificial Intelligence

The Advantage platform uses AI technology to deliver high-level and vehicle-specific, granular oversight of the risks associated with your automotive finance portfolio.

AI Technology - Dashboard - Advantage Automotive Analytics

Our GPS technology collects data and AI sorts through and analyzes it. It monitors vehicle events such as location, health, driving patterns, and much more to identify optimum behavior, risks, and potential vehicle loss based on patterns identified through the collection and analysis of billions of vehicle data points that our GPS sensors collect every day.

We use AI technology to group risks into intuitive categories that can help predict a customer’s likelihood of default, potential skip, and whether or not to allow a contract extension or additional grace period in which the customer can get caught up on back payments. The intelligence gleaned from this data analysis is presented on the Advantage dashboard, where it provides managers the information at a glance, allowing them to manage risks through exceptions. The dashboard uses smart technology to:

• Identify sources of risks quickly
• Monitor trends
• Identify and mitigate inefficiencies and risks
• Drill into detailed analyses by vehicle or group; and
• Reduce manual report set ups

Simple preference sets ups can have Advantage’s Dashboard data sent directly to your email or phone.

Advantage delivers modernize finance intelligence so you can protect your assets, grow your portfolio with confidence and increase your bottom line. This can be used as a stand-alone solution or integrated into your system of choice. Ask us about our APIs.

Michelle Jackson - Vice President of Sales - Advantage GPS

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