Transforming the Auto Industry Through Modern Analytics & Technology
Machine learning and Artificial Intelligence (AI) have become the price of entry in the modern automotive asset finance industry. As new technology and innovation continues to transform the fintech marketplace, more vehicle finance professionals have invested in “smart” apps to assist in loan originations, decisioning, collections, and vehicle safety and maintenance.
Automotive analytics solutions now support forward-looking risk management to more accurately measure lenders’ risk exposure. These AI solutions with predictive analytics can assist lenders improve forecasting, optimize performance, reduce portfolio risks, and ultimately increase net profit.
Today’s topic: Predictive Analytics
There are few things in the life of finance professionals that would give them more confidence and happiness than a crystal ball that would tell them who they should fund, how much they should fund them for, and for how long the contract term should be. There are no crystal balls — yet — but what exists today are powerful predictive analytics generated by GPS technology that will assist with real-time collections and future funding decisions.
The Advantage platform provides its clients with insights into their collateral (at both the asset level and for the full portfolio) in terms of potential financial losses, vehicle location and health. Our platform, powered by AI, detects “exceptions” to common rules and guidelines and those parameters set by the user. Notification of these exceptions in real time serves to prevent losses and/or mitigates them before they bring significant financial harm to the business.
Advantage uses advanced GPS sensors, both battery-powered wireless and wired systems, to collect, monitor and assess vehicle-asset data using machine learning and AI. The systems search for and recognize patterns contained within the data in order to detect risks and identify opportunities. Various behaviors or patterns and especially variations from normal patterns can provide a wealth of information to our clients. It may point to such things as:
Incorporating predictive analytics into your daily operations helps you understand your finance portfolio health and risks more accurately. By detecting threats in advance, you have more opportunity to avert financial losses.