Knowledge Center Archives - Inovatec Systems

2 separate Inovatec surveys shed light on pain points for lenders & consumers – post on Autoremarketing.com

While enhancements in auto financing certainly have been made over the years, a pair of surveys orchestrated by Inovatec Systems Corp., revealed areas where improvements still could be made for the benefit of finance companies and consumers.

This week, Inovatec began with the results from its latest survey that touched on consumer pain points associated with finance companies when financing a vehicle.

When asked about the biggest complaint associated with financing their last vehicle, 56.8% of consumers said that finding a bank or finance company that would approve the purchase of the vehicle was their biggest complaint. 

An additional 37.8% of those respondents said there were too many steps involved, and 30.6% said the processing time was their biggest complaint.

In a separate survey, Inovatec recapped that finance companies were asked to identify issues and challenges with their current processes in their organization. More than 35.6% of participants reported operational issues were a struggle, while 28.1% reported issues in lack of efficiency.

Read the original article on the autoremarketing.com.

SURVEY REVEALS CUSTOMER PAIN POINTS IN FINANCIAL LENDING PROCESSES, LENDERS HEED OPERATIONAL EFFICIENCY CHALLENGES

Majority of Consumers Report Complaints Related to Time and Efficiency in the Automotive Lending Process

Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, today announced the results of its latest survey, revealing consumer pain-points associated with lenders when financing a vehicle.

When asked about the biggest complaint associated with financing their last vehicle, 56.8% of consumers said that finding a bank or lender that would approve the purchase of the vehicle was their biggest complaint.  An additional 37.8% of those respondents said there were too many steps involved, and 30.6% said the processing time was their biggest complaint.

In a separate survey, lenders were then asked to identify issues and challenges with their current processes in their organization. Over 35.6% of lenders reported operational issues were a struggle, while 28.1% reported issues in lack of efficiency. The findings show a clear discrepancy between lender processing systems and customer needs. Consumers today desire quick outcomes, yet also expect personalized customer experience. Companies are searching for AI tools that allow them to increase customer satisfaction through digital retailing.

Furthermore, consumers were also asked what factors would make the buying process easier in the future. Over 62.2% said that quicker, more simplified processes were top of mind. Another 29.7% reported that in-real-time access to updates on the status of their loan would simplify the process, and 24.3% said that access to pre-qualification tools would improve their experience.

When consumers were asked about their level of understanding on the terms of their loan, only 34% reported they fully understood their loan. Sixty-six percent of consumers reported they either do not understand the terms of their loan at all, or somewhat understand but do not know every detail. This statistic should be concerning to lenders specifically as misunderstanding of loan terms can significantly affect loan default.

“The survey shows a clear divide between lender process system efficiency and customer needs that affect the overall customer experience,” said Bryan Smith, Head of Consumer Growth and Partnerships at Inovatec. “Lenders need access to updated systems that integrate artificial intelligence to improve their processes, which has a trickle-down effect to customers over time.” 

Evolving Lending Technology Is Reshaping the Way Consumers Transact in Private Automotive Sales

It’s no secret that for years consumers have been privately listing their vehicles for sale on sites like Autotrader, Kijiji, Cars.com and more. In fact, according to the NIADA Used Car Industry Report, approximately twelve million cars were sold through private party sales in 2018. With an increase in used-car sales, it can be assumed that private-party consumer-to-consumer sales will also increase. And while millions of consumers have sold their cars online, they’ve always been at the mercy of their buyer arranging financing in order to complete the deal. New technologies today may be changing this in the consumer’s favor.

While many technological capabilities are now available to dealerships, lending technology historically remained limited for consumers looking to sell their own vehicle. In a private sale, the buyer must secure their own financing independent of the seller, either through their own bank or private party lender. However, there is always a chance that the buyer’s funding may not get approved- requiring the seller to find a new buyer. What’s more, privately selling a vehicle often-times opens sellers up to many risks including theft, misrepresentation and fraud.

A new series of technological advancements has changed this. Lenders today are looking to offer a more effective solution for consumers in both a buying or selling situation. The process starts when a seller lists their vehicle for sale on a website that supports automotive resale. Through lending process management technology, the seller would have the ability to offer their vehicle for sale with financing options that are backed by a lender. Thus, allowing the buyer to work directly with the lender to purchase the vehicle, without securing financing through an outside vendor source.

Furthermore, because of technology available today, listing aggregating sites such as Autotrader or Cars.com can offer, connect and facilitate lending options to their customers who are selling vehicles on their website. This allows the seller to offer financing directly to the buyer, all made possible through an AI powered software platform that is integrated through the site itself. Not only does this increase customer confidence in the sale, but overall customer satisfaction as well. This technology is enabled through loan origination software that builds out a loan based on a variety of factors, allowing for this “consumer-to-consumer” transaction to occur.

An additional benefit of this process is that buyers can have more accurate conversations with lenders about their finances and vehicle affordability. When the buyer is working directly with the lender, they may feel more secure disclosing discrepancies in their finances, rather than providing that information first to a dealer who reports the information back to the lender. Often, when a consumer enters a car dealership, selects a vehicle, and sits down to go through financing, the financing aspect takes the longest amount of time.

Over the past few years, it’s evident that buyers today do not want to spend hours at the dealership shopping and sitting in the finance office. Websites such as Carvana and Vroom that promote buying and financing cars online are increasing in popularity, likely because of convenience. With new options available for buyers and sellers at the consumer level, more consumer-to-consumer transactions can occur.

Through automation and lending technology provided by a loan origination software system, consumers can have a more honest and direct conversation with the lender. Consumer income, dependability, and credit history can more accurately be depicted leaving less room for unaffordable loans in which consumers often default. Automation technology allows for more reliable and secure transactions to occur at the consumer-to-consumer level, increasing private-seller appeal for automotive buyers.

Overall, the implementation of AI driven lending technology will certainly reshape the way consumers transact with one another, as well as the way consumers transact with lenders. It’s possible that such technology will also lead to an increase in consumer-to-consumer private party deals, with more secure transactions leading to customer confidence.

Author: Vladimir Kovacevic, CTO Managing Partner

Growing Influence of AI & Automation in Mortgage Processes and Lending

Today’s leading financial institutions in the United States are investing millions into updating their capabilities through the use of artificial intelligence (AI). Automation affects almost every industry today in one way or another. More specifically, the mortgage industry continues to see change in regulations and compliance, increasing the need for stronger processes in internal and external systems.

Many of today’s mortgage firms are realizing that they have missed the mark in their processes and internal systems, specifically as artificial intelligence capabilities increase. In most of these organizations, there are many disparate management systems that are used internally throughout the lending process to simplify and organize documents and records. There may be a system used by the accounting department to manage finances and transactions, another system used by the marketing department to increase lead generation, and another LOS (Loan Origination System) used for processing documents.

Many organizations face difficulties in streamlining these processes, blending all facets together as one unit. The accounting system, the marketing system, and the LOS system are all independently run, with no connection to each other. Each system in itself works to be customer-centric to provide a more positive customer experience before and after a transaction is completed. However, processing systems would actually be more customer-centric if they were interwoven.

For example, the accounting system runs independently from the LOS system, and both may store their data in a singular data warehouse that ties all functions together. Yet, these systems are tied together only at a data level, not at an operational level. Because they are tied at a data level, it’s nearly impossible to find status on documents and mortgages in real-time. If the systems were tied at an operational level, anyone in any department could pull a real-time status update for a customer, allowing for quicker decisions and better customer service.

The development of artificial intelligence tools is enabling new systems to be completely process oriented. All functions can be tied together creating a transformative system that can be utilized for years to come. While some organizations maybe taking full advantage of advanced AI technology integration, others are simply upgrading the technology they currently use. Essentially, allowing for very little organizational change and “doing what one’s always done” just in a faster way. Mortgage companies that excel in their processes understand that small upgrades simply do not provide the same level or organizational transformation that a complete process management system enables.

Not only does the integration of a process management system improve internal efficiencies for mortgage lenders, but AI digitalization offers lenders an opportunity to engage with their customers on a more personalized level, encouraging stronger customer relationships by using AI to enhance their experience. For example, some process systems will allow for lender customers to log in and view actionable items themselves, rather than requiring a customer to call or email their lender. The same system can allow for customers to upload documents and necessary items directly through a portal, which can be placed directly into the process management system rather than requiring the customer to scan and email documents, and then requiring internal personnel to upload them. Not only does this better serve the customer, but quickens the process internally for lenders.

Furthermore, the standardization of processes helps mortgage lenders to stay in compliance with ongoing regulations. With updated AI systems, legal documents can be more easily found and organized. By improving the way documents are held in a secure environment, there leaves little room for error. This is especially true with systems that have the capability to flag the lender when they are missing legal necessities in a document, such as a signature.

In conclusion, standardization of processes utilizing AI can help mortgage lenders to provide better customer service, increase efficiency, and save money over time. Rather than making simple and costly upgrades to separate existing systems, using a business process management system with integrated artificial intelligence that connects all systems into one will significantly improve operations for mortgage lenders.

Author: Vladimir Kovacevic, CTO Managing Partner

Inovatec Appoints Bryan Smith as Head of Customer Growth & Strategic Partnerships in Canada

BURNABY, BC (September 19, 2019) – Inovatec Systems announced that Bryan Smith took on the role Head of Customer Growth & Strategic Partnerships, effective September 1st, 2019. Mr. Smith has been Vice President of Sales & Marketing for Inovatec for the last 4 years and has 20+ years experience in the asset-based finance industries.

“With the growth we are continuing to see further specialization and segregation of roles and responsibilities across the whole organization. This is a much-needed step to ensure that we not only improve the level of service with our existing customers but that we also have dedicated capacity on the team to grow our relationship and better align with our existing customers for mutual benefit. We are very excited that Bryan has accepted this new challenge and have full confidence in his ability to deliver the expected results.” Said the Company’s Managing Partner and CTO, Vladimir Kovacevic.

Bryan Smith said: “We have been very privileged at Inovatec to experience a tremendous amount of growth in a very short time frame. Our team continues to grow as well, but as we grow we need to stay focused and remember where our success came from . . . our customers. We recognize the fact that we need to re-set the standard for being a true partner to our customers and remain integral to their success. I am very excited to take on this role. I will be working closely with our team to develop strategic plans for continued growth for our customers with the Inovatec Systems and more importantly, strong execution on those plans. ”

About Inovatec Systems

Inovatec Systems provides industry leading, cloud-based software solutions for any financial institution, any type of transaction. All solutions can be brought together in a single seamless and branded platform that can be opened to external partners and customers. Capture any marketplace – full, robust ecosystem to drive the online customer/lead to you, streamline and facilitate the processes of crediting, auditing, funding and income verification for financing applications plus full servicing & portfolio analytics in the leading-edge LMS.

For more information, please contact:

Bryan Smith
Inovatec Systems | Head of Customer Growth & Strategic Partners
bsmith@inovatec.com
(647) 269-9449

Inovatec Partners with Inverite Verification in Strategic Partnership

Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, and Inverite Verification, the leading open-banking provider with coverage for over 275 Canadian Financial Institutions, today announced their strategic partnership to increase operational efficiencies for lenders.  

Inovatec will integrate with Inverite to increase the speed of lending decisions through income verification, transaction history and risk scores to help lenders make better informed decisions. Inovatec’s cloud-based software solutions for the automotive industry streamlines the process of submitting applications to lenders, while Inverite provides sophisticated algorithms to generate custom risk models that use customer profile information and past repayment history to make lending decisions.

“Strategic partners have become an increasingly important part of our offering. The Inovatec systems will now be able to automate the Inverite solutions for our valued lender partners, adding efficiencies to the Customer Onboarding process,” said Bryan Smith, Head of Customer Growth and Partnerships at Inovatec. “The Inverite solutions will be integrated in our Compass Asset Finance (CAF) LOS for credit & funding.”

Inverite’s software uses data from over 500,000 banking reports which is used to train machine learning algorithms to make statistical predictions based on patterns detected in millions of individual customer transactions and profile data. Through machine learning (ML) Inovatec customers have access to unmatched configuration and business process automation, resulting in quicker lender decisions based off on more accurate consumer credit and buying behaviors.  

“Inverite is excited to partner with Inovatec Systems” said Lloyd Evetts, Director of Business Development. “Our instant bank verification, income verification and risk scoring services will provide new customer insights that will help Inovatec’s lenders in making accurate and effective credit decisions.”

About Inovatec Systems Corp.

Inovatec Systems Corporation is an industry-leading provider of cloud-based software solutions for automotive and equipment financing institutions. The seamless platform is ideal for external partner and customer communications through a robust ecosystem that streamlines the process of crediting, auditing, funding and income verification for finance applications.

About Inverite Verification

Inverite, launched in 2017, is a leading provider of innovative, cost-effective, and secure banking verification solutions to the financial industry for income verification, risk assessment, fraud reduction, and KYC/AML (know-your-customer and anti-money-laundering). They support over 240 Canadian financial institutions and include many of Canada’s leading lending fintech and paytech companies as clients, and support thirty-three financial institutions in Chile and Colombia. 

Inovatec and CARFAX Data Integration

BURNABY, BC (August 28, 2019) – Inovatec has chosen CARFAX Canada VIN Scan to significantly increase speed and throughput when processing submitted applications in our already industry leading LOS, cloud-based lending software solutions. This brand-new functionality allows Inovatec users to adjudicate lease and finance applications with greater efficiency and accuracy than ever before.

CARFAX Canada has billions of data records from thousands of unique sources, including data that can’t be found anywhere else. VIN Scan integrates seamlessly into the Inovatec LOS dashboard (Compass), enhancing its users’ ability to see important information about a vehicle at a glance. There is always the option to order a full CARFAX Canada Vehicle History Report if more specific detail is required.

Press Contact:

Bryan Smith
Inovatec Systems | VP, Sales & Marketing
bsmith@inovatec.com
(647) 269-9449

SURVEY: AI integration in Automotive Loan Processing Procedures

BURNABY, BC (August 6, 2019) – I Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, today announced the results of its latest survey, showing 79.3% of C-Suite finance executives polled overwhelmingly reported their organization was most in need of Artificial Intelligence (AI) Integration in their automotive lending processes. 

Although it’s no surprise businesses are increasingly interested in automating processes and utilizing intelligence tools, respondents prioritized AI integration business transformation over cost reduction, process improvement, workflow management, product launch, digitalization and documentation needs. 

The survey revealed a glaring need for process automation for financial organizations, especially automotive lenders. Approximately 81% of lenders polled said they are not currently using an online digital origination channel that leverages process automation. However, most lenders (36%) said their current system struggles with operational issues and nearly half (43%) said compliance requirements are also the leading reason why they would consider a process management solution. 

When asked what specific challenges they faced in loan processing, 52.6% admitted the process was too complicated and required too many steps. Twenty-three percent said the process takes too long, and 27.4% said the system was not easy to navigate. 

Furthermore, Inovatec also surveyed a group of consumers who recently purchased or sold a vehicle and asked about their experience surrounding vehicle financing. Among the 125 consumers polled, 72% of sellers stated that once a buyer was interested, securing financing took the longest amount of time; followed by transfer of title or paperwork and price agreement. When asked what their biggest complaint was in financing their last vehicle, 59.2% said the process took a long time from start to finish, and another 21.4% said there were too many steps involved. 

“The survey sheds light on the fact that lenders and consumers both recognize the need for more efficient lending processes and procedures in the marketplace,” said Bryan Smith, VP Sales & Marketing at Inovatec. “It’s clear that artificial intelligence process integration is a top priority for lenders. The strategic implementation of AI and machine learning tools enables lenders to focus on improving the finance process for each individual customer in a more seamless and accurate fashion.” 

About Inovatec Systems Corp.

Inovatec Systems Corporation is an industry-leading provider of cloud-based software solutions for automotive and equipment financing institutions. The seamless platform is ideal for external partner and customer communications through a robust ecosystem that streamlines the process of crediting, auditing, funding and income verification for finance applications. For more information, please visit www.inovatec.com.

Press Contacts:

Inovatec
Erica Olson
Merit Mile
EOlson@MeritMile.com
763-458-4435 

Inovatec Partners with ZestFinance to Enhance Lending Procedures

BURNABY, BC (July 17, 2019) – Inovatec Systems Corp., a provider of industry-leading, cloud-based software solutions for all financial institutions, and ZestFinance, a leader in artificial intelligence (AI) software, today announced their strategic partnership to enhance lending procedures in the financial services industry. 

Inovatec will integrate Zest Automated Machine Learning software (ZAML) into its business process management technology to help lenders immediately improve their underwriting results with custom machine learning (ML) models. ML has been proven to reduce error and losses, and improve efficiencies and profits. ZAML customers typically achieve a 15% increase in approval rate or a 30% reduction in charge-offs by switching to ML. 

The world’s top financial institutions are increasingly looking for artificial intelligence to create new sources of business value. According to an MIT Sloan report, 83% of all enterprises agree that driving AI adoption is a strategic opportunity, but eight out of ten do not understand what data is required for AI, or how to access it. 

Inovatec’s agile process builder allows any financial institution to create processes and workflows that can be seamlessly and almost immediately implemented with minimal training. This technology, paired with Zest AI software, will enable lenders to use more data and better math to approve more borrowers quickly with no added risk. 

“Financial services will be transformed by those who can use technology and innovation to build smarter decision-making tools,” said Bryan Smith, VP Sales & Marketing at Inovatec. “Zest’s AI solutions complement our systems in a way that’s better for our customers, leading to stronger operational efficiencies that improve their bottom line.” 

About Inovatec Systems Corp. 

Inovatec Systems Corporation is an industry-leading provider of cloud-based software solutions for automotive and equipment financing institutions. The seamless platform is ideal for external partner and customer communications through a robust ecosystem that streamlines the process of crediting, auditing, funding and income verification for finance applications. For more information, please visit www.inovatec.com

About ZestFinance 

ZestFinance helps lenders use machine learning to develop and launch highly accurate and transparent credit risk models. Zest’s software tools enable our clients to increase revenues, reduce risk, and ensure compliance. ZestFinance was founded in 2009 by Douglas Merrill, the former CIO of Google, and a team of former Google employees with the mission of making fair and transparent credit available to everyone. The company is headquartered in Los Angeles, California. For more information, visit www.ZestFinance.com

Press Contacts:

Inovatec 
Erica Olson 
Merit Mile 
EOlson@MeritMile.com
763-458-4435 

Trust Science and Inovatec Systems Team Up to Release World’s First End-to-End Loan Management Platform Powered by Alternative Credit Scores

PALO ALTO, Calif., June 12, 2019 – TrustScience Inc., a leading provider of AI-powered credit scoring, and Inovatec Systems, a new breed of Loan Operating System (LOS) provider, announced today they will partner to release a fully automated lending platform that enables end-to-end loan management across the entire credit spectrum.

Lenders can be up and running on a fully customized LOS and an AI-powered loan underwriting model within weeks, not months (or years).

Trust Science CEO Evan Chrapko comments, “This partnership gives lenders the ability to accurately score and lend to an additional 64 million consumers in the U.S. alone, with unprecedented accuracy and speed. The end-to-end, customizable nature of Inovatec Systems’ LOS makes it a perfect partner for Trust Science and our API-based scoring solution.”

Bryan Smith, VP sales & marketing at Inovatec, shares a similar sentiment. “With this partnership, Inovatec Systems will now be able to automate the powerful AI tools at Trust Science alongside traditional credit scoring and risk measurements. Our lenders will have instant access to the Trust Science Six°Score™ to determine creditworthiness based on alternative, uncorrelated data, generating simple and powerful results for a more complete risk assessment of the individual.” He continues, “The Trust Science tools will be integrated into our Compass Asset Finance (CAF) for credit and funding, driving more innovation and thinking differently.”

Mark Eleoff, CEO of Eden Park Inc. and a customer of Trust Science and Inovatec Systems, remarks, “Both Trust Science and Inovatec Systems have proven themselves to be innovative, value-added and very customer centric in working with us to improve our credit decisions.”

A BETA version of the integration has been underway for several months, and general release is expected in June.

About Trust Science Inc.

Trust Science provides AI-powered alternative credit scoring to lenders, helping them sift prime borrowers from wrongly scored subprime applicants. Trust Science gathers alternative unstructured data and consented mobile data using its patented (30-plus patents across six countries) data collection methods and builds custom underwriting models for short-term, installment, direct auto and indirect auto lenders. Lenders see increases in their loan origination volumes, reduction in default rates and double-digit ROI. For more information, please visit www.trustscience.com.

About Inovatec Systems

Inovatec Systems provides industry-leading, cloud-based software solutions for any financial institution, any type of transaction. All solutions can be brought together in a single seamless and branded platform that can be opened to external partners and customers. Capture any marketplace – full, robust ecosystem to drive the online customer/lead to you, streamline and facilitate the processes of crediting, auditing, funding and income verification for financing applications plus full servicing and portfolio analytics in the leading-edge LMS. For more information, please visit www.inovatec.com.

Press Contacts:

Bryan Smith
Inovatec Systems | VP, Sales & Marketing
bsmith@inovatec.com
(647) 269-9449

Bryan Katis
Chief Product Officer, Trust Science
bryan.katis@trustscience.com
(678) 468-7391