When vehicle exception reports stack up, Lien Solutions is there with technology that works for vehicle lending
The world of banking is in the midst of a massive paradigm shift. Disruption has been at work on the consumer and retail banking side for quite some time and the effects are now permeating into the commercial space.
Customers have seen the digital transformations banks have made on the front end, and that has changed their expectations of what can be delivered on the back end. As a result, bank operations are feeling significant pressure from customers – and from their corporate management – to coordinate operations and manage both due diligence and risk. Commercial auto lenders are also looking for more innovative approaches to bank operations to keep up with the digitization that has so clearly transformed the front end of banking.
But as much as banks focus on the customer-facing front end, there are still manual processes and inefficiencies in the back end. So when a modern, online bank still has to rely on spreadsheets and manual updates to conduct vehicle title perfection work, it can put them at a competitive disadvantage.
Many customers come to us with a real problem: the internal resources were drowning in the number of exception reports and title corrections that were present in their vehicle lending department.
It’s true everywhere: vehicle lien exceptions happen, and all lenders have to proactively address them. However, not having a proper, scalable exceptions process or any automation in place can put a lender at risk. Should a borrower default on their loan, a lender would have to go through the lengthy and costly process of collecting on an asset with an unperfected lien. For many banks the backlog of unperfected liens means increase in financial risk.
Unfortunately, many lenders rely on manual, spreadsheet-based tracking which takes hours, but deliver erroneous results that are rarely up to date. Additionally, the title processing team’s work is often disrupted by someone asking for an update on the status of a title or for a duplicate title.
The risk to lenders is not only financial, either. Employee morale can be affected due to a large amount of manual, tedious work required to follow up on exceptions. We hear stories about frustrated employees who are in charge of managing exceptions and must spend hours on the phone with DMVs in multiple states correcting lien holder names, removing incorrect borrower’s names, making changes to lien holders listed on titles and doing VIN number corrections.
Enter Lien Solutions. Our award-winning SaaS platform is up to the challenge delivering real time order status tracking while a team of motor vehicle experts addresses exceptions, corrects errors, adds lien holders, removes borrower names, orders duplicate titles and delivers everything else necessary to perfect motor vehicle liens. We offer superior visibility into the status of exceptions, so lenders can save time on reporting and monitor the exceptions that are being addressed.
On average, our customers see a 20% gain in overall productivity, which leads lenders to a greater focus on value-add work, rather than manual tasks. Our customers can address their exceptions an average of 90% faster, reducing risk and optimizing their work.
Exceptions can – and will – happen but traditional processes may not be enough in the modern lending environment. It may be time to align with a partner that is equipped for everything the topsy-turvy world of motor vehicle lending and titling has to dish out.