Disrupting technologies are finally turning their attention to the way we buy, sell, use, and pay for cars by cutting inefficiencies in the exchange of information, goods, and services. Historically, buyers are typically stuck covering dealer overhead and OPEX costs because state laws prohibit direct sales from manufacturers to consumers.
There are several start-ups that are changing this model and taking car sales online, thus reducing the middle man fees and passing the savings on to both the buyer and seller. Virtual dealerships are likely the wave of the future. This innovative distribution models allow for better inventory management and eliminates costs associated with managing physical lots and a salesforce.
With innovation in auto delivery models, also comes innovation in the auto finance area as well. Auto finance has had a consistent problem of misclassifying borrowers. For example, a millennial may be classified as subprime; however, this borrower may not be high risk. Maybe they have a limited credit history or their debt-to-income ratio is skewed due to high balances of student loans. Financing needs to look beyond the old school mentality of credit scores and be able to assess the person’s ability to repay based on other data and factors.
DemystData is able to push the envelope and provide better modeling systems and data integration to help auto finance lenders approve more, and better applicants, thus improving their revenue streams and risk factors.
DemystData allows for the creation of intuitive, structured, actionable data attributes from messy and unstructured data, which gives auto lenders the ability to optimize workflows and improve risk decisions through more and better data in real-time.
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