ATLANTA--(EON: Enhanced Online News)--The United States is expected to sell 15.5 million cars and trucks in 2013, according to research by Autodata Corp., an increase from the 14.5 million vehicles sold in 2012. While sales are increasing, the automotive industry may be missing out on potential revenue from 50 million U.S. consumers who are underbanked and lack access to the credit needed in order to purchase a vehicle. FactorTrust, the leading provider of underbanked consumer data, analytics and risk scoring solutions on those underserved by traditional banking channels, has a solution for subprime auto lenders looking to reach these consumers more effectively.
“Leveraging FactorTrust's database will help subprime auto lenders and others in this industry offer more opportunities to millennial and underbanked consumers as a whole”
Today, the company announces the launch of the FactorTrust Automotive Finance Practice to provide lenders access to useful data on the millions of underbanked consumers. With more than 20 years of experience in the financial services market, Scott Brackin will lead the group, offering actionable insights and tools to move the needle for this industry.
"We see the need for access to more intelligent data on underbanked consumers growing throughout the automotive industry as a whole," explains Greg Rable, CEO of FactorTrust. "It's imperative for lenders to utilize information that provides them with a better understanding of who their underbanked consumers are and also equips them with highly predictive tools to more accurately evaluate a borrower’s credit risk. The growth of the automotive industry depends on it. Through the launch of our Automotive Finance Practice and with Brackin in the driver's seat, FactorTrust is developing new sales opportunities for the industry nationwide."
The average FactorTrust credit score for underbanked consumers is 701, according to a recent FactorTrust Underbanked Index, which offers interested parties tracking and benchmarking information to help them understand the needs of underbanked consumers. For those underbanked who have less than a 680 traditional credit score, the additional data from FactorTrust as well as the FactorTrust score, can provide a more detailed picture of the borrower and influence the amount of the auto loan or interest rate1.
Additionally, the Index recently reported that one of five underbanked borrowers is a millennial (18-30 years old). Similarly, this same demographic of people are buying cars at a slower rate than their parents, because they are restrained by mounting student loan debt and a rising cost of driving2.
"Leveraging FactorTrust's database will help subprime auto lenders and others in this industry offer more opportunities to millennial and underbanked consumers as a whole," says Brackin. “The primary driving force of this Practice is the data. With better risk prediction, lenders have the ability to be more competitive without sacrificing sound credit policies, and consumers benefit by more favorable terms. Truly a better ‘look to book’ story regardless of which side of the desk you happen to be on.”
FactorTrust has compiled the most comprehensive data on the underbanked market in the industry through lending portfolios that report data daily, in real time. This daily loan performance data on millions of underbanked consumers is analyzed and combined with leading third-party data attributes in order to provide instant lending decisions using the company’s comprehensive scoring platform. Lenders are continually faced with the challenge of how to effectively and intelligently manage risk to capitalize on this segment. This analysis uses data not typically reported to the credit bureaus, and is invaluable in helping consumers have access to better borrowing options, while also providing a more accurate assessment of the consumer for lenders. For more information, please visit www.factortrust.com or contact FactorTrust at 1-866-910-8494.